Businesses insurance is designed to pay for losses, damage, and other expenses associated with a multitude of covered events so that your company doesn’t have to.
For example, if your inventory is damaged, if a customer files a liability lawsuit, or if an employee is severely injured on the job, so long as you have the right business insurance coverage in place, you won't have to worry about the related expenses will affect your company’s bottom line.
Here are some of the things you can expect a well-built business insurance policy package to do for your business.
Pay for Damage to Your Business Property
- This is covered by commercial property insurance.
- Commercial property insurance can cover the structure of the building in which your business is housed (if owned by your company) as well as your company’s assets including such things as tools, machinery, inventory, computers, furniture, outdoor signs, and more.
- Example: Faulty wiring ignites a fire at your business warehouse. Tens of thousands of dollars worth of inventory is destroyed by flames, smoke, and firefighting efforts.
Pay for Someone Else’s Medical Bills or Property Damage
- This is covered by commercial general liability insurance (CGL).
- CGL covers many of the most common liability lawsuits businesses face. If a third party is injured on your business premises, if a product your company produces or sells causes injuries or property damage to others, or if your company is sued for copyright infringement, this insurance can cover the related expenses.
- Example: An elderly customer in your store slips on a wet floor and suffers a hip fracture that requires surgery and months of physical therapy.
Pay for Accidents Involving Company Vehicles
- This is covered by commercial vehicle insurance.
- Commercial vehicle is insurance is required for all company-owned vehicles. Businesses frequently need higher liability coverage limits to protect against expensive lawsuits, particularly if insuring a passenger vehicle or large truck.
- Example: While driving to a product expo, one of your sales representatives loses control of the company van on icy roads resulting in a multi-vehicle accident.
Pay for Treatment of Employee Injuries & Occupational Illnesses
- This is covered by workers' compensation insurance.
- Workers’ comp insurance is required for all employers in this district. It covers medical expenses and disability pay for workers who are stricken with occupational illnesses or injured on the job. This insurance not only protects your workers’ finances, it can also shield your company from potential liability lawsuits related to these injuries.
- Example: An employee at your restaurant suffers second- and third-degree burns in a kitchen mishap.
Provide a Continuation of Income during a Forced Closure
- This is covered by business interruption insurance.
- Business interruption insurance can cover regular monthly expenses like loan installments, employee salaries, and rent during times that your business must remain closed temporarily due to a covered event.
- Example: A windstorm causes a tree to uproot and it falls onto your business. It takes several weeks before repairs can be made so that your company can resume normal operations.
… and More!
In many cases, the business policies mentioned above are not enough to fully cover businesses against all of their exposures.
Fortunately, there are many more commercial insurance products and options available, so with the help of an independent insurance agent, you can find the policies you need to mitigate all of risks may cause financial harm to your business.