Your business might face different kinds of risks and there are several types of business insurance available to provide cover for any of such risks. Before seeking the services of an insurance company to secure your business against unforeseeable risks, it will be better to discuss this with your insurance broker or agent in order to provide the ideal cover for your business. However, an overview of the different types of business insurance will be necessary so you know the type of insurance covers that are available for your business.
General Liability Insurance
These types of business insurance are mainly carried out to give protection against legal issues as a result of negligence, injuries, or accidents. They provide coverage for payments against incidents such as lawsuit costs, slander, libel, medical expenses, property damage, and bodily injury. Understand that there are different insurance policies available under the liability insurance policy and they all differ based on the extent of coverage they provide. Those policies that cover more clauses will be more expensive than those that cover fewer clauses. So, you should be aware of the types of clauses you want to include when taking up a liability insurance contract.
Product Liability Insurance
These types of business insurance are for distributors, wholesalers, and manufacturers and it is intended to provide cover against financial loss due to product defects that causes bodily harm or injury. The premium amount always depends on the type of product involved. Generally, clothing accessories will have lesser premium payment than edible stuffs since their lawsuit amounts will equally be lesser.
Professional Liability Insurance
This is for professionals who may be held responsible for negligence, errors, or malpractice in the course of their business transactions. These types of business insurance can be compulsory in some areas of specialization. For instance, doctors and physicians are required to purchase a professional liability insurance policy before they are allowed to operate in some states.
Commercial Property Insurance
This is intended to insure a company property against vandalism, civil disobedience, fire, and natural disasters. The term ‘property’ is generic and also include lose of documents, computers, buildings, income, and business interruption. There are two major levels of these types of business insurance: (1) those that cover all risks associated with commercial property; (2) those that cover only items mentioned in the insurance policy. Before embarking on this type of insurance, it is important to consult your broker or agent for proper advice on the type of insurance policy to go for, depending on the nature of your business.
Home-Based Business Insurance
These types of business insurance only provide cover to home based businesses. If you will need extra protection on other types of business, you may need to include other policies such as professional liability insurance.
As explained before, it is important to seek the advice of your insurance broker so you know the type of business insurance that is best for you. There are different clauses included in these policies and an insurance broker will help you understand them better.