The different types of business insurance are as follows: property insurance, casualty or liability insurance, auto insurance, crime insurance, business interruption insurance, business life insurance, and worker’s compensation insurance.
As a business owner, you should always be mindful of the huge investment you have allotted in running your own business. One way to protect your investment is by purchasing business insurance. Business insurance is a great help in reducing financial risks brought about by unpredictable events like accidents, natural disasters, lawsuits, and so on. Business insurance is comprised of many types so the cost in obtaining one varies from one insurance provider to another. It is ideal that you ask for an insurance sales leads agent to guide you in choosing the best business insurance for you. Below are the different types of business insurance:
Property insurance insures an owned, leased or rented property, including its contents, against damage or loss from fire, hurricanes, hail storms, explosions, theft, vandalism, and other disasters. Talk to your agent about the details of your property insurance coverage needs because this type of insurance can be specific and applied to one type of risk. Purchasing a few components of this type of business insurance can be costly, so you should choose the exact coverage you need.
Casualty or liability insurance
Casualty or liability insurance covers the loss and damages caused by acts of negligence or omissions. It also covers lawsuit costs and settlement bonds if ever the problem goes to court. This type of insurance is best paired with property insurance, and is not particularly connected with life or health insurance.
If you happen to have a vehicle used for business purposes, then it is likely that you need auto insurance. This will cover the cost of repairing any damage to your vehicle and to other vehicles if an accident occurs.
Basically, crime insurance covers the damages and loss of the business against robberies and even employee theft.
Business interruption insurance
In cases when the business may have to temporarily close, business interruption insurance helps support the business until it reopens again. This type of insurance covers the damages and loss of the business’ calculated earnings during those periods.
Business life insurance
This type of life insurance is particularly for businesses run by partnerships or corporations with some stockholders. The business life insurance insures the partners and stockholders of the business by dispensing money to purchase the portion or business interest from the family of a deceased partner or stockholder.
Worker’s compensation insurance
Worker’s compensation insurance is a must for businesses with a fair number of employees. This will cover the damages and medical expenses of your employees for on-the-job injuries.
It is better be prepared than to risk your business to any financial crisis. Business insurance is a sure back-up plan when business trouble arrives.