It takes a keen advisor to assess all your coverage needs, which is based on your business size, business type, nature of the job, safety of your property, equipment and processes, the level of security you need, and the risk you and employees face.
What Does Business Insurance Cover?
There are different types of insurance policies which include different types of coverages. Let’s take a look at the different types of coverages that an insurance policy might include:
Commercial Property Insurance – covers damage to your building structure, equipment, tools, and inventory.
General Liability – covers costs up to your policy’s limits associated with injury at your business, or from using your product or service. These costs are typically associated with medical fees,damages to property, or legal fees. Here are some specific examples:
Bodily injury: if a customer slips on your wet floor, you are liable for that injury. General Liability will cover the medical fees.
Personal Injury: if you or your employees are sued for slander over a publicized comment, GL will cover the legal fees.
Property Damage: if your awning falls and breaks a customer’s windshield, GL will cover the cost to make the necessary repairs.
Professional Liability (a.k.a. Errors and Omissions a.k.a. E&O Insurance) – covers claims associated with mistakes or negligence caused by you or anyone in your professional or personal-based service. Whether or not a mistake is your fault, Professional Liability will typically cover your legal fees and the restitution that may be ordered as a result of a lawsuit to correct the mistake.
Business Income Insurance (a.k.a. Business Interruption Insurance) – covers lost income as a result of having to close your business due to any covered peril such as fires, burglaries, vandalism or storm damage. Extra Expense coverage is also usually available to cover the cost of relocating your business temporarily or permanently depending on the damages to the building and possibility of returning to open for business.
Business Vehicle Insurance (aka Fleet Insurance) – covers vehicles owned and used in your business.
Business Crime Insurance – covers losses from criminal activity like theft, computer fraud, employee dishonesty and other crimes.
Commercial Umbrella Liability – Increases and broadens liability coverage, filling in gaps left by other coverages.
Electronic Data Processing Coverage – covers costs associated with the loss or damage of electronic data processing media or equipment.
Equipment Breakdown – covers losses from equipment malfunction such heating, electrical, air conditioning, telephone systems and other equipment.
Employment Practices Liability – covers costs associated with employment practices issues such as disputes with employees over termination, discrimination, and sexual harassment.
Inflation Guard Coverage – provides coverage for inflation on building and business personal property values, and inflation on materials and labor expenses. The limit of insurance on your policy automatically increases at the annual percentage rate you choose.
Inland Marine – covers products, materials and equipment when transported over land by truck or train, or while temporarily stored by a third party. Collisions and cargo theft are the two most frequent causes of inland marine losses.
Ordinance or Law Coverage – provides coverage for the necessary demolition of the undamaged portion of your building and subsequent upgrades to meet current building codes after a covered loss.
Pollution Liability – covers costs related to pollution, including clean-up and personal injury.
Utility services – covers losses to your building, business personal property, or income as a result of power, communication or water utility interruptions.