Commercial Insurance Policies Protect Business Owners
Individuals who own a business need insurance to protect the company against any risk or potential claims that may be filed against it. A commercial insurance policy is not a one-size-fits-all because of the many types of businesses and risks that are inherent to each. During the underwriting process, your business insurance agent will gather detailed information as it relates to the business endeavor and will determine the types of risks the business owner could be exposed. The information gathering will lead your agent to write the most comprehensive business insurance policy possible.
- The biggest risk any business owner faces is liability to others. Business owners are required by law to have liability coverage in place. Business liability policies are typically sold as a package and include: Public liability, this is protection against claims brought against the company by the public; Product liability coverage protects the company against any commercial liability if a product it manufacturers has a claim brought against it for design or manufacturing faults.
- Property damage is required for businesses that operate at a specific location and require protection against fire, flood, or other building perils. Along with this policy, the business owner will purchase a commercial content coverage policy to protect items within the building. Contents include equipment, supplies, and inventory.
- Business continuation/interruption insurance helps the business owner keep the business operational in the event of a fire or other disaster destroys the business buildings. Business interruption insurance is purchased in an amount based on the business’s previous years’ annual revenues and will pay out a specified amount for a specific period to keep the business operational. This type of policy could protect a business owner that relies on freezers or refrigeration equipment for its supplies.
- Additional business insurance coverage policies are available to protect all classes of business even if it doesn’t fall into a specific trade category. These policies are sold outside of the typical combined business policies and can include: commercial legal expense coverage, directors and officers insurance, keyman policies, and several others.