5 Types of Business Insurance and Why They Are Important

No matter the nature or size of your business, it is obvious that you need business insurance. Just like homeowners do when buying home insurance in Burlington, there are many different features of your business that you will want to consider when looking for new insurance, or even reviewing your current coverage. Since all businesses are different, each will have different insurance needs. For instance, a company that offers services might require different insurance from a company that produces physical goods. This article looks at some types of insurance that should be considered by all businesses.

  1. General Liability Insurance

This insurance coverage is designed to protect people and their businesses from a number of claims, such as injuries, accidents or claims of negligence. This kind of insurance can help pay for things such as property damage, faulty products, legal costs, medical expenses and slander. While nobody expects to get sued, the reality is that it is always a possibility. You do not want to leave your company open to these kinds of situations, and the wider the protection, the better.

  1. Workers’ Compensation Insurance

This coverage is required by law in most states. It can offer coverage for medical costs and a part of lost wages for a worker who gets ill or injured on the job. Usually, this type of business insurance only covers illness or injuries that happen on the job site – such as if a worker slips and falls on a wet floor, thus getting injured.

  1. Property Insurance

The meaning of “property” is wide, and can mean different things to different kinds of businesses. That is why it is important to ensure that you carry adequate Commercial Property Insurance. Property covered by this kind of insurance can include inventory, computers, buildings, office supplies and other equipment. Property insurance is available in two types: “all-risk” policies, which cover almost everything and “named-peril” coverage or “peril-specific” policies, which apply only to certain perils that are particularly named in the policy.

  1. Professional Liability Insurance

This insurance coverage can also be referred to as “Malpractice Insurance” or “Errors and Omissions Insurance”. This coverage protects you from claims that allege negligence in offering professional services, offering shoddy work, or making mistakes or omissions. This kind of business insurance is specifically essential if your business is service-based, but can be necessary for other business types, as well. Mistakes occur, so adequate Professional Liability Insurance may be helpful, even if you do not think you will need it.

  1. Life Insurance/ Key Executive Insurance

Providing life insurance for workers can be a valuable advantage when attempting to attract high-quality workers. Businesses can even offer extra coverage for executives. These workers are deemed to be essential to running, as well as to the success of the business, and might sometimes need extra insurance, in addition to what standard employee benefits provide. This can be beneficial in attracting top talent.

In conclusion, business insurance is a major component of your company and cannot be ignored. It is important to ensure that you work with a licensed, reputable and experienced insurance broker or agent who has adequate knowledge regarding businesses like yours. This also applies to people looking to buy home insurance in Burlington.

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