As a result of property damage and liability claims, businesses need business insurance to protect themselves. A business owner may be liable for costly damages and legal claims against their company if he or she does not have business insurance. This can be a financially devastating scenario for business owners based on the circumstances. Depending on the state, certain types of business insurance are required.
The majority of small businesses need a business owner’s policy (BOP). Business income, business property, and business liability insurance are all covered under one BOP. Businesses and their assets are protected by commercial property insurance, sometimes referred to as business property insurance.
It is important to have general liability insurance, also known as commercial liability insurance, in order to protect your business from claims made against it. Customers might sue your company if they trip and injure themselves on your property. If a claim is made against your business, your business liability insurance may help cover the expenses.
Giddings Agencies can help you determine the best business insurance coverage for your company. Contact us today to get a quote.
There’s more to insurance than the price of the policy.
Explore our interactive graphics and learn about your unique risks and the related insurance solutions.
Employment Practices Liability Insurance (EPLI)
There is an average of three out of five lawsuits brought by employees against businesses. A lawsuit cannot be prevented, but there are ways to limit defense costs.
The directors and officers of your business should be protected by employment practices liability insurance. A legal protection plan protects employers as well as their employees against discrimination, sexual harassment, and wrongful termination.
General Liability Coverage
There are many risks associated with businesses, such as bodily injury claims, property damage claims, and personal injury claims.
Any business must have general liability insurance. It covers you when you are held responsible and liable, and it also covers your defense costs regardless of the merits of the lawsuit.
You are required by law to have the proper coverage in place if one of your employees is injured or becomes ill at work.
If an employee suffers an injury or illness on the job, workers' compensation protects them. In order to comply with the law, you must have this coverage.
New liability exposures have arisen from the Internet. A variety of technologies, including e-commerce, social networking, and cloud storage, provide great benefits to both large and small businesses. You must also protect your customers' data, financial information, and privacy with these benefits.
You are covered for damages in the event that your network is accessed by unauthorized individuals. Additionally, it covers employees responsible for spreading viruses, stealing computers, extortion, or unintentional acts, mistakes, errors, or omissions. Embracing technology to help run your business is making this coverage so much more important.
Business Auto Insurance
Your business may be financially harmed if you are responsible for injuries or property damage sustained by others in an auto accident.
Coverage for business auto insurance includes bodily injury coverage, property damage coverage, and other coverages that protect a company's assets. Comprehensive coverage and collision coverage are also included.
Business Income Coverage
Would you know what to do if your business was affected by a fire? Would an extended system outage result from a pipe leak? It's important to note that these and other events are likely to have a major impact on your business's long-term viability, as well as your ability to serve clients and generate revenue.
When damage to your commercial property, such as fire or water damage, prevents your business from operating as normal, business income insurance can compensate your business. The revenue you would have earned had the incident not occurred is covered by business interruption insurance. Despite a temporary halt in business activity, the policy covers ongoing operating expenses such as electricity.
What Business Insurance Covers
In the event of a covered loss, business income insurance helps replace lost income. In the event of a temporary suspension of your business, this is a great way to ensure you are able to pay your bills, payroll, and stay afloat while your business is suspended. As an example, imagine your business is closed for repairs due to a fire. If your business income is lost in the course of repairs, business income insurance can help you replace it.
Furthermore, certain states require businesses to carry business insurance. Businesses with employees need to comply with the following requirements:
- Insurance coverage for workers’ compensation
- Insurance for unemployment
- Insurance for disability
Employees who lose their jobs due to injuries or illnesses sustained on the job are covered by workers’ compensation. Employees’ compensation insurance, for example, can help cover the medical costs if they are injured lifting heavy equipment.
In the event of a job loss that is not their fault, unemployment insurance provides benefits to workers.
Do I Need Business Insurance?
Many business owners wonder, “Do I need business insurance? In short, no. Business insurance comes in many forms. Business owners can utilize them in cases of catastrophic natural disasters or in lawsuits against their businesses or employees.
For employees working for your business, such as workers’ compensation insurance, a certain level of insurance is required in almost every state. Business insurance covers risks such as theft, lost wages due to injuries, and more. If you do not have a business insurance policy, you may have to cover the costs yourself. Depending on your finances, your business can be completely destroyed.
How does your state regulate small business insurance? Workers compensation and unemployment insurance are required in most states if you have employees. You may need disability insurance depending on where your business is located. The purpose of business insurance is to protect the owner’s assets and themselves in the event of an unforeseen situation
Choosing Business Insurance
Businesses can tailor their insurance coverage to address the specific risks they face by choosing from a variety of business insurance coverages. Take into account the aspects of your business that need to be protected when choosing coverages. These could include:
- Your type of work
- Physical location
- Equipment and property
- The right to intellectual property
- Customers and employees
Business insurance coverages are also unique to different industries, so take that into account as well.
It is common for businesses to purchase Business Owner’s Policies (BOPs). Typically, business operation policies include property and liability coverage for business operations and income coverage for business operations. Business insurance can be cheaper and more convenient if these coverages are combined.
Your business can be protected from the cost of claims for bodily injury or property damage by purchasing insurance. In the case of an injury sustained in your store, a customer may sue your business. Having general liability insurance can help you cover the costs of defending yourself against claims. Additionally, it prevents your business from having to pay for advertising errors.
Business personal property insurance Provides protection for the buildings and personal belongings of your business. Inventory, tools, and furniture may be included.