Type of Business Insurances
Most up-start and new businesses, small or medium sized don’t have any insurance investments. This is because most people are unaware of the various business insurances available in the market that can actually benefit their business.
So let’s start by familiarizing with the different types of business insurances that you or your business can benefit from.
General Liability
General liability insurance is a type of business insurance that has been created solely to protect business owners from different types of liability exposures. These are specific risks you’re your business might face and include liability due to accidents within your premises or accidents caused by a machinery, injury caused to a consumer by your products, and even contractual liability. These situations will all be covered under general liability business insurances.
Business Owner's Policy (BOP)
BOP stands for business owner’s policy and it is basically a bundled insurance. BOP provides both liability and property insurance together in one policy and you have to pay a single premium for both the coverage. Hence, this is one of the most popular forms of business insurances in the market. The coverage under BOP is broad enough and has been created mostly for small and medium sized businesses that have less than 100 employees.
Property Insurance
Property insurance is quite a valuable form of insurance, which basically indemnifies a business owner for any loss incurred in their physical property or if the business faces a loss of income. This loss of income can be due to machinery failures, fire and theft, or other natural or external causes and will be covered.
Workers' Compensation
Worker’s compensation is considered as one of the most important business insurances and is mandatory in most states in the US. The insurance cover and terms will vary from one state to another. It ensures that you are able to furnish medical care to your employees during an on- job injury. Some of the other aspects covered include benefits to dependents of employees killed during occupational accident. Apart from that, Some states in the US also require additional insurance apart from workers compensation and this includes scaffolding liability or stop gap coverage.
Business Automobile
Business automobile is one of the few business insurances that are not applicable to all businesses. It is applicable to only those businesses that have vehicles or automobiles used for business work like transportation of products, raw materials etc. There are different types of vehicles used in businesses depending on the type of business like private passenger cars, light vans, pickups, container trucks, and sport utility vehicles but they can only be insured if they are used only for business purpose and not for personal purpose. Business automobile cover will offer protection to you against any type of liability claims related to the business vehicle.
Some of the other types of business insurances available include Professional Liability/ Errors & Omissions (E&O), Marine, Umbrella (Supplemental Liability), Business Interruption, Key Person Life, and Travel Insurance.