A Look At The Various Types Of Business Insurance

Posted on: 27 October 2020

Any business, bet it large or small, faces a variety of risks that can result in its closure. Business insurance is intended to cushion a business against such threats, thus ensuring its continued operation and growth. In other words, it acts as a safety net for businesses in case a risk event occurs.

Here are some common forms of insurance available for businesses.

Workers' Compensation Insurance

Every business is generally responsible for the health and safety of the people that work for them. If an employee of your business sustains an injury while acting on behalf of your company, they may eligible for compensation for their injury.

Workers' compensation insurance typically covers:

  • The cost of medical treatment.
  • Lost income.
  • Psychological trauma from a physical injury.
  • Disability and death benefits.

A work-related injury can result in a high-dollar workers' compensation claim, even if the injured employee was performing a low-risk task. The best way to protect your business against the financial impact of such claims is to purchase workers' compensation insurance.

Public/Third-Party Liability Insurance

Your business isn't just responsible for the safety of its workers but also other people that access its premises for commercial reasons. If a customer, business vendor, or other third-parties get injured inside your commercial building and your business is at fault for their injury, they can file a lawsuit against it.

Public liability insurance protects against claims of bodily injury and property damage suffered by members of the public who visit your business premises. They may cover the cost of medical treatment and rehabilitation, repairing or replacing damaged property, as well as legal fees incurred while defending your business against lawsuits by the aggrieved third-parties.

Property Insurance

This form of insurance is relevant for businesses that operate physical premises only. They cover against potential damage to the building and the assets kept inside it. These assets may include business-critical items such as office furniture and equipment.

Auto Insurance

If you use vehicles in your business operations, your entire fleet should be covered against the risks the vehicles face in case an accident occurs.

Auto insurance can cover employees that operate your company vehicles, as well as the merchandise carried. It can also cover third-party injury in the event of a vehicle-to-vehicle collision.

Product Liability Insurance

If your business manufactures a product that is sold to the general public and the product is found to be unsafe or defective, it may be face lawsuits resulting from injuries or damage caused by that product. 

Product liability insurance is designed to cushion your business against the financial consequences of such lawsuits.

There are many different types of commercial insurance available to help keep businesses up and running. The right blend of insurance policies depends on the needs of your business. Talk to a business insurance company for more information.