What is Business Protection Insurance?
Business insurance is essential protection that will help cover the costs of losses such as lost revenue, lawsuits, property damage, and other costs. Businesses will usually purchase several types of insurance and combine them into a single policy that is customized to fit their specific needs.
What Is Covered by Business Insurance?
A BOP or Business Owner’s Policy is one of the most common business policies. A BOP typically combines coverage for business income, general liability, and commercial property into a single policy. Combining these protections can reduce the cost of business insurance.
Claims for property damage or bodily harm made against your company might be mitigated with insurance. For instance, if a consumer gets hurt while shopping at your store, he can file a claim against your company. You may be protected by general liability against the expense of the claim and potential legal expenses. Insurance can also help protect your company from the expenses associated with advertising mistakes.
Business Insurance Types
- Professional Liability Insurance
This protects against negligence claims brought about by errors or performance failures. This will need to be tailored differently for every industry.
- Property Insurance
In the event of a fire, storm, or theft, property insurance will cover the equipment, signage, inventory, and furniture. Mass-destruction incidents like floods and earthquakes are not covered.
- Home-Based Businesses
Homeowner’s policies do not cover home-based businesses and commercial property insurance will need to be purchased for a home office, covering inventory and equipment.
- Product Liability Insurance
Product liability insurance is crucial if your company sells goods and could potentially be named in a lawsuit for harm caused by its products. A company is safeguarded in such situations by product liability insurance.
- Insurance Against Business Interruptions
When an event disrupts the regular flow of business, business interruption insurance reimburses the company for its lost income.
What Does Business Insurance Not Cover?
Standard commercial property insurance policies might not provide coverage for losses caused by certain natural disasters, floods, and other significant weather occurrences. The same is true for any customer property stored at your company. Standard professional liability insurance does not cover intentional or fraudulent activities; however, some theft or fraud may be covered by a fidelity bond. Automobile accidents are not covered by standard general liability policies; business auto insurance is required.
