Business ownership is a coveted aspect of the American Dream.
Just as drivers are legally required to have at least a minimum form of insurance coverage, every business regardless of size is required to have some common types of insurance. For example, all businesses must have workers compensation insurance which protects them in the event an employee is injured on the job. Between keeping employees happy, keeping customers coming back, and making sure they are doing everything legally, business owners have their hands full. They should not be expected to know every aspect of insurance or the giant glossary of terms related to insurance. There are however, some common terms and policy options that business owners should have a working knowledge of.
We break terms and policies into four separate categories to better explain their overall use. These categories are very broad and include many insurance options.
The four categories are personal, business, specialty, and benefits.
Business Insurance
Business insurance is as it sounds. Insurance for a business. The vast number of industries and company sizes means there are a lot of different insurance options to choose from. Some options will benefit smaller companies while others will benefit larger companies. Some options are more applicable to certain industries over others. Below, we take a look at some of the most common insurance policies regardless of business size or industry type. It is important for business owners to review several different options when choosing business insurance for their company. Better yet, they can have a professional insurance agent help them find policies that are the best fit for them.
General Liability Insurance
General liability insurance protects your business in the event that your operation causes bodily injury or property damage to someone outside your organization. If a customer trips in your store, general liability insurance will cover you in the event the customer sues you for medical expenses. General liability will also cover you in the event your business does damage to the property you are renting. If you are renting a building to do business out of the property owner can sue you for any damages you may cause. This type of policy will help you pay the expenses of the suit.
Commercial Property Insurance
While liability protects you in the event there is damage to someone else’s person or property, commercial property insurance protects you in the event your property sustains damage. Coverage that deals with flooding, fires, natural disasters and accidental damage fall under the umbrella of commercial property insurance. When unfortunate events like these happen to your assets commercial property insurance helps with costs of repairs and replacement.
Errors and Omissions Insurance
Errors and Omissions Insurance is similar to liability coverage. It protects you deal with the costs of a lawsuit someone has filed against you. In fact, some business owners think that their general liability policy will cover them for things that are only covered by errors and omissions insurance. Essentially, this type of policy deals with the financial losses of others that have been caused by your business. For example, say you have a consultation business and you give advice to another business. For whatever reason he advice does not go as planned and causing the client company financial losses. The client company then sues your consultation business for the losses. Errors and omissions insurance will help you deal with the financial expenses you will face from the lawsuit.
Business Owners Insurance
Business owners insurance policies are combination polices that group together two common types of business insurance options into one plan to make your coverage complete while keeping it simple. These plan options offer the customization of having multiple policies but are usually less expensive than having multiple policies. The two insurance options included in business owners insurance are property insurance which covers you for damage to your property and liability insurance which covers you for the damage to someone else or their property. Having these two coverage options can be the difference between unfortunate yet doable claims and financial ruin for your business.
Independent Insurance Agents
Having protection from the various claims that can happen to any business is as important as customer retention. Your insurance policies should be custom to your needs as a business. Reviewing these common business insurance policy types are a great start for any business owner. However, a review will probably not be enough to answer all of your questions. The Konen Insurance team is dedicated to providing you with accurate advice and policy recommendations that will fit your specific needs. Contact us for expert advice in every field of insurance.
