How to Know What Coverage You Need for Your Business

Every business is different as are their insurance needs. The size, industry, location and other factors of your business can all affect the type and mount of coverage you need. Speaking with an insurance agent can help you determine the right coverage to protect your business. 

Consider common business insurance needs such as: 

Liability 
Liability insurance primarily protects your business in case of a lawsuit. Even if your business is small, lawsuits are common and can cost thousands or even millions of dollars. Common liability insurances include: 

• General Liability: General liability insurance covers bodily injury and property damage that occurs on the business’ property.
• Professional Liability: Professional liability insurance is useful for businesses with professionals offering specialized services. This insurance covers claims concerning professional negligence. You may be required to carry this insurance to obtain certain licenses or work on certain projects, such as if you are a contractor or run a hospital.
• Umbrella Liability: Umbrella liability insurance fills in the gaps left by other liability coverages.
• Product Liability: Product liability covers bodily injury and property damage that may be caused by a product manufactured or sold by your company.
• Liquor Liability: Liquor liability is useful for business that sell or manufacture alcohol. This insurance helps cover accidents that may occur after a customer purchases alcohol from your establishment. You may also be required to carry this insurance to obtain certain licenses. 

Commercial Property 
Different types of property need various kinds of insurance. Basic commercial property insurance covers the physical property owned by a business from damage caused by fire, wind, hail, lightning, smoke, theft and more. You can also purchase equipment breakdown insurance in case your business’ equipment suddenly breaks down. 

Workers Compensation 
Workers compensation provides coverage for your employees in case they are injured on the job. This insurance can help cover medical bills, wage replacement, disability benefits and more. 

Workers compensation is required in most states depending on your industry and number of employees. Be sure to check your state’s requirements when it comes to insurance. 

Be sure to speak with an insurance agent about insuring your business with the best coverage tailored specifically for your business. There are multiple types of coverages available for your business but not all policies are created equal. Shop around and compare quotes to ensure that you are getting the right insurance.