If you have a business of any sort, you may be at risk. These risks vary from natural disasters to burglary and from staff accidents to prosecution for professional negligence. Fortunately, there are several types of business insurance products available that can at least help to reduce the financial aspect of these risks.
The following are the most common types of business insurance:
1. General Liability
Most companies get sued at one time or another. When a lawsuit is filed against you, liability will cover all or some of the costs associated with settling the dispute. Because some companies engage in riskier operations than others, the amount of protection your firm needs should be based on these risks. For example, a construction company typically carries significantly more liability coverage than a local bookshop, since the likelihood that someone will be injured in construction is much higher.
2. Public Liability Insurance
This form of coverage exists to protect a business from claims arising from injuries to members of the public or damage to their property. Typical examples of such claims may include someone slipping and injuring themselves badly while on your premises or who has their clothing ruined accidentally by a member of your staff. This may also be needed to cover third-party property risks such as if your boiler explodes and badly damages an adjacent property.
As its name suggests, property insurance covers the actual physical location of business from things like fire, flood, hurricanes and theft. It must be noted, however, that some exclusions may apply based on location. For example, if your office is in a flood-prone area, you may be expected to purchase a separate flood policy. Though it is often grouped with property protection, casualty shields owners from loss and damage to assets that occur during regular operations.
4. Workers Compensation
Most states require that your company carries workers compensation insurance, but it depends on how many employees you have, what type of business you are in, as well as other factors. You must check with your state’s governing body to learn about the exact requirements as they apply to your company. However, even if you are exempt from carrying this coverage, you should consider getting it anyway. Even in so-called “safe” environments like corporate offices, employees can still be hurt from slips and other accidents. Having this policy can ensure that you protect your employees and your bottom line.
5. Professional Liability
Professional liability coverage is an important type of business insurance to have. This covers against loss or damage if you make an error in providing services that result in injury, property damage, or some other type of loss for your customers. For example, it may cover you if you are fixing an air conditioning unit and a piece of equipment is broken off. It may also cover bad advice given during a consultation that results in a loss for the customer. The specifics depend on the type of policy and company you own.
6. Commercial Umbrella
This is one of the types of insurance for businesses that can be overlooked. If you are operating from commercial premises (this includes offices) that you own or rent, you may be advised to consider specialist insurance to cover your contents and building. This will protect you from the risks of natural disasters such as fire and issues such as burglary with its associated vandalism and theft.
It’s worth remembering that even if you operate from an office at home, this could change your insurance risk profile and it may be a mistake to assume that problems would automatically be covered by your household buildings and contents policy. At the very least it makes sense to notify your insurance company.
This list is not exhaustive, but it should indicate that there are numerous risks out there. If you are unlucky enough to suffer one or more of these, the financial costs could prove horrendous and very possibly beyond the means of you or your business to meet. The legal costs alone of fighting a court case can be staggering.
It is for these reasons that various types of business insurance exist but as even the above-simplified list alone indicates; insurance for businesses can be complicated. If you are worried about your exposure but baffled as to which forms of insurance you need then contact us at S.T. Good Insurance of Florida so we can offer some help and advice. We specialize in placing business risks that can be difficult to accommodate in ordinary business insurance policies.
Contact us today for a consultation (772) 287-3625