Types Of Business Insurance Policies

There are business insurance policies available for any possible risk involved in your business. Although most businesses do not require all the types of policies available, they will however need many. The rates and amount required for coverage of the policies will vary depending on the insurer. By discussing with your agency your business risks and also the types of business insurance policies they offer, they will be able to guide you on purchasing the exact type of insurance you will need.

Business insurance policies is a wide ranging description, which can be divided into many types

General Liability Business Insurance Policies
This particular business insurance policy is one of the most important forms of coverage a business should get. These will help protect you from any type of payment you might incur due to any sort of damage or injury you or your employees or the products and services from your company might cause to someone else. This business insurance policy will be able to cover any sort of legal hassles because of accidents, injuries and also any claim of negligence.

Product Liability business insurance policies
Those companies that distribute wholesale, retail and manufacture a product will require this business insurance policy as they are liable for the safety of their product. Product liability insurance help protect your business from any financial loss due to accusations that might arise because of products that were defected and caused injury or damage. The coverage required for this particular business insurance policy will depend on the kind of product that is being sold. A restaurant will have a far greater risk as compared to a furniture manufacturer.

Professional Liability business insurance policies (Errors and Omissions Insurance)
Those businesses that provide services such as accountants, insurance agents, consultants, real estate agents, notaries etc. should have this business insurance policy. The general liability policy will not protect your business from negligence, errors or malpractices caused because of the services that are provided to your customers. Therefore it is wise to take up professional liability insurance.

Commercial Property business insurance policies
The term property covers not only buildings but also lost income, money, company papers and computers. This business insurance policy will cover damage or loss of the company property due to fire, theft, vandalism etc.. It can cover a specific risk or even a wide range of risks.

Umbrella Policies?

When the liabilities on other business insurance policy have been exhausted companies usually opt for umbrella policies. This business policy covers anything that has slipped through or exceeded the limit of the other business insurance policies. They are relatively economical however business owners are required to buy the maximum limit available on the other business insurance policies.

It is important to remember that you should never go for a business insurance policy where you might think is inadequate. For e.g.: 50,000 in a product liability insurance when the cloth store and the products are worth more that 3, 00,000. There are different ways to lessen insurance costs so it is important to check with trade associations and professional groups as most of them offer discounts when you opt for their membership package.

Types Of Business Insurance Policies

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