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4 Types of Business Protection Insurance Your Company Could Benefit From

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4 Types of Business Protection Insurance Your Company Could Benefit From

Businesses are exposed to a lot of risks, which can be a nightmare for business owners. While the details of what risks business owners will face depending on the company’s location, size, industry, and other details, what all of them have in common is that they can minimize those risks with the right business insurance policy. Read on to find out about four types of business insurance any company can benefit from having.

Commercial Property Insurance

Commercial property insurance policies protect the physical property and any vital items kept inside the building. These include furniture, equipment, electronics, inventory, and more. Property insurance protects against most forms of loss, damage, and theft, so any business owner who plans to maintain a physical location should make it a priority to shop for insurance here. That goes for everyone from giant factory owners to entrepreneurs who are just getting off the ground in their home garages.

Liability Insurance

The exact liability insurance policy business owners will need depends on what kind of company they run, but just about all businesses need some kind of liability insurance policy. These policies are designed to protect businesses and business owners if someone sues them for negligence. Liability insurance covers damages and medical bills if the injured party wins the case along with legal fees whether the plaintiff wins or not.

There are several specialized forms of liability insurance. They include errors and omissions insurance for those who may face malpractice suits and specialized product liability insurance to cover defective product suits.

Workers’ Compensation Insurance

Most states in the US have laws in place mandating that business owners must carry workers’ compensation policies for their employees, with Texas as the one notable exception to this rule. Don’t confuse workers’ compensation insurance with unemployment insurance, which is paid through state taxes. Business owners are responsible for taking out workers’ compensation insurance policies that will cover expenses incurred by employees should they be injured on the job.

Workers’ compensation insurance covers everything from hospital bills and medical expenses to lost wages, making it important enough that state and local agencies will get involved and force business owners’ hands. Although they must carry this form of insurance almost everywhere, the laws regarding how much coverage they must purchase vary by locale. The Small Business Administration (SBA) recommends that new business owners pay a visit to their local Workers’ Compensation Offices to find details about local laws and regulations.

Business Vehicle Insurance

This final type of insurance coverage is only relevant to business owners who have fleet vehicles. Business vehicle insurance policies will cover any vehicles used by field workers or employees who must travel for work. Even small business owners should purchase these policies if they plan on using their personal vehicles for business purposes, as standard auto insurance policies rarely cover commercial vehicles.

The Bottom Line

Business insurance is the best way to protect companies of any size from unnecessary risks. The four types of policies listed above are actually just a few of many specialized commercial insurance products aimed at providing business owners with peace of mind. The best way to decide which policies will provide the most comprehensive protection for the best price is and always will be to speak with a dedicated insurance agent who has experience working with other business owners in similar industries.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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