Building a business is a lot of hard work. You will want the fruit of your labor to be guarded and cared for. When it is time to cover your business, you must choose the right insurance agent and provider. However, before you do that, you must familiarize yourself with the different types of insurance policies that can cover your business.
1. Business Owners Policy (BOP)
When you own a business, there are several types of coverages that you would have to purchase for that business in case of theft or property damage, delay in business, or other liabilities. A BOP policy gives you all of these policies as a bundle with a premium that charges lower than the combination of policies.
Discuss the need to purchase a BOP with expert insurance coverage advisors. They will let you know if you need one based on the size of your company, its location, etcetera. They will also let you know if your business qualifies for any special considerations.
2. Commercial Auto Insurance
Commercial auto insurance includes coverage for different cars used by your company, like trucks, vans, or regular SUVs. Every commercial auto insurance covers three elements:
- Physical damage or collision insurance
- Liability insurance
- Other coverages under comprehensive coverage.
Your commercial auto insurance policy could also include necessary add-ons like coverage for underinsured drivers, roadside assistance, auto loans/lease coverage, and the list goes on. The type of coverage you need depends on how much you use vehicles and the scope of your business.
3. Commercial General Liability
A Commercial General Liability (CGL) policy provides coverage against personal injury claims, property damage, or bodily injury claims that result from their business activities or products. This includes several types of coverage.
This is a comprehensive policy with many policies written into one. For example, there is premises coverage for claims made for things that occurred at a specific premise, but it may also include damage caused by a product at another location. You can discuss that in depth with commercial insurance advisors.
4. Commercial Property Insurance
Commercial property insurance covers your property assets against fires, burst pipe accidents, storms, property damage from vandalism, and theft. Depending on your location, you can get coverage for earthquakes or typhoons added to the policy.
The price of your commercial property insurance depends on various things like your location, whether your building was constructed with fireproof materials, the occupancy of your business, and more.
5. Commercial Umbrella Insurance
What if your liability insurance falls short when a claim has been filed? For situations like that, there is commercial umbrella insurance. This is not sold as a stand-alone policy but coupled with your general liability insurance. You can get very high coverage for a very little premium with this type of insurance.
6. Workers’ Compensation
If someone working for you was injured on the job, they have rights to workers’ compensation and or disability checks. You must have workers’ compensation insurance to be able to handle the payouts should this happen to your employees.
Worker’s compensation policies differ from industry to industry, but they are a must-have for any company. Even if you’re a corporate setup without any heavy machinery or lifting, you never know how someone could get injured on the job, and you will have to accept the responsibility.
