8 Types of Insurance Policies for Commercial & LLC Businesses to Consider
5/4/2022 (Permalink)
Depending upon the type of business and industry you are in, your business may require different types of insurance.
Listed here are 8 different types of insurance that many small businesses get to protect them from a variety of saturations and mishaps.
- General Liability Insurance (GLI)
General liability insurance helps protect your business from claims that it caused:
- Bodily injury to someone else
- Property damage to another person’s belongings
- Personal injury, like defamation or insult
- Commercial Property Insurance
Commercial Property Insurance is used to protect the building your business runs out of along with the equipment you use to run your business.
Though, most of the time this insurance type does not cover certain natural disasters such as earthquakes or floods. Commercial flood insurance and other policies are used to protect against such items.
- Business Income Insurance
Business income insurance comes in handy when you cannot work due to certain circumstances but you need to still make money to stay afloat. This insurance can cover lost wages. So, you can use this coverage to help recompense for ongoing expenses, such as rent, employee payroll and utilities. This type of insurance is likewise recognized as business interruption insurance.
- Professional Liability Insurance
Professional Liability Insurance comes in handy when someone is trying to make a claim against your company stating you made a mistake in your services provided. This type of insurance is also identified as errors and omissions (E&O) insurance.
- Workers’ Compensation Insurance
Workers' Compensation Insurance gives your employees benefits if they get hurt or sick from their job. These benefits can help with paying medical bills replacing lost wages, covering funeral expenses and paying for continuing care such as medical or mental therapy. In most cases, carrying this type of insurance is required and you will face serious fines and consequences if you fail to obtain a worker’s comp policy.
- Data Breach Insurance
Date Breach Insurance, known as cyber insurance, protects your online confidential information and covers you if any information gets stolen or misused by an unauthorized user. Data breach insurance will notify impacted individuals that their information has been compromised along with offering identity theft services.
- Commercial Umbrella Insurance
Commercial Umbrella Insurance is important as like an umbrella, it helps cover you desperate times. For instance, when your claim exceeds the coverage limits for some of your liability policies, your umbrella insurance can cover the difference.
- Commercial Auto Insurance
Commercial Auto Insurance is used by companies who have their employees driving company owned vehicles. It can help cover property damage and bodily injury claims from an accident your business causes, regardless of who is at fault. This can be crucial as car insurance companies do not cover third party incidences where a company vehicle is involved. This is where your commercial auto insurance kicks in.