Protecting your company with business insurance is key to making sure you will still have a viable business in the event of some disaster or lawsuit. Commercial insurance can protect entrepreneurs against a wide array of risks associated with running a business. Here are the most common types of coverage to consider:
1) Property insurance
In the same manner that you protect your home and personal property against the risks associated with fire, theft, or storm damage, your business should also carry property insurance. Regardless of whether you own or rent your space, you should protect your business assets, such as furniture, computer equipment, etc., against these same threats.
2) Product liability insurance
For companies that manufacture products for sale to the public, merely ensuring that the item you make is safe in every possible manner is not necessarily enough to protect your business against lawsuits filed due to damages caused by your product. As such, product liability insurance will protect your specific manufactured item against customers suing your business for damages associated with its use.
3) Professional liability insurance
In the event of a mistake or failure to perform, professional liability insurance, also known as errors and omissions (E & O) coverage, protects you against claims of negligence owing to mistakes and failure to perform as promised. Since every industry has different concerns, a customized policy written specifically for your type of business would be best.
4) Business interruption insurance
Business interruption insurance will protect your income should some type of catastrophic event disrupt your business activity. This can be an especially important consideration for individual entrepreneurs.
5) Commercial vehicle insurance
Comprehensive insurance policies will protect your business against liability risks in case an accident occurs. Businesses should have third-party injury coverage for their vehicles at a minimum. Using your personal vehicle for commercial purposes without commercial vehicle insurance can leave yourself exposed to risk.
6) Business insurance for home-based businesses
If your business is a home-based concern, check with your insurance broker to talk about expanded commercial insurance coverage. A typical homeowner’s policy does not usually cover against losses of business related equipment and inventory, so getting a full idea of your coverage options is critical to your ongoing business success.
Protect yourself and your business
Matching your needs with the right insurance coverage will protect your business against the risk factors you are most likely to face. To learn how to limit your liability, contact our team of business insurance experts. Call 1-800-731-2228 today or email firstname.lastname@example.org. We know how to reduce the risks you face as an entrepreneur, and we’re here to help, any time.