Types of Business Insurance
There are many different types of business insurance you can get, and each type is designed to protect your business against a different kind of financial risk. Depending on what your business does and other factors, you may need different kinds of coverage. Below are common types explained to help you determine what type of insurance is best for your business.
General Liability Insurance
General liability is a very important type of business insurance that all businesses should have. It helps protect your business against lawsuits filed by people outside your company, like customers, covering expenses like legal defense and settlement costs, and medical bills.
Commercial Property Insurance
This protects your business against costs that arise due to damage to your building, inventory, or other equipment caused by natural disasters or other covered accidents, helping you repair or replace that damaged property. You can get commercial property insurance even if you work from home. You should keep in mind that this doesn’t cover damage from earthquakes or floods.
Business Income Insurance
This is sometimes called business interruption insurance. It financially protects you if an event occurs that prevents you from operating your business. This coverage will help you to pay for ongoing expenses, like rent, utility bills, payroll, and taxes. In some instances, this coverage can help with the cost of renting temporary space or hiring temporary staff.
Workers’ Compensation Insurance
Workers’ Compensation Insurance can protect you and your employees in the instance of a work-related accident. If an employee injures himself at work or as a result of the nature of their work, this coverage helps protect you from lawsuits or claims that may be filed against your business. It covers the employee’s medical bills and their income during the time they can’t work. Workers’ comp is required by law for most businesses.
Professional Liability Insurance
This type of insurance helps protect you against lawsuits from customers or patients that claim you made a mistake in your provided services. It can cover the costs of legal representation and settlements. This is also referred to as errors and omissions (E&O) insurance.
Cybersecurity Liability Insurance
Cyber Liability Insurance can protect your business from data and other cybersecurity breaches. It typically covers the costs of getting your data back, improving your digital security, and restoring your company’s reputation through public relations campaigns. This coverage is sometimes called cyber insurance.
Commercial Auto Insurance
Similar to personal auto insurance, this covers your company vehicles or your personal vehicle while you’re doing business. It can help cover property damage and bodily injury claims from an accident when your company is at fault. This type of insurance is important because in the case of an accident you cause with a business-owned vehicle, a personal auto insurance policy won’t cover third-party claims.
Commercial Umbrella Insurance
Once you’ve reached the coverage limits for some of your policies, Commercial Umbrella Insurance will kick in and provide extra protection. This coverage is typically for larger businesses that may face large lawsuits where settlements can’t be fully covered by general liability insurance.
Key Person Insurance
If a core member of the business leadership dies or is unable to work, this can help pay for lost income, pay for hiring someone as a replacement, or other related expenses.
Still have questions? Centro Hispano is always here to help! Call us today and one of our agents will gladly assist you.
