Business Insurance – Protecting Your Company From Unforeseen Events

Business insurance helps protect your company from lawsuits and financial loss due to accidents, natural disasters or other unexpected events. It is important for any company, from a small family owned business to a large corporation.

Some types of business insurance are required by law, while others are optional. Typically, companies that own or lease property require liability and property insurance.

Liability

Liability coverage for business insurance protects companies from claims that result from accidents and injuries related to company operations. This includes things like customers slipping and falling on a wet floor in your store, or someone filing a lawsuit alleging that the products or services you provided caused injury or damage to them. The best way to find the right liability plan for your business is to meet with a knowledgeable agent who can recommend an appropriate limit based on your company’s specific needs and history.

Commercial property coverage, on the other hand, protects companies’ physical assets from damage or theft. This type of business insurance reimburses companies for the cost of repairs or replacement, as well as lost income during the period when the property is being fixed. It’s a common component of a business owner’s policy, but can also be purchased as standalone coverage. Other types of specialized business insurance include surety bonds and fidelity bonds, which protect against employee dishonesty and fraud.

Property

The property coverage for business insurance helps pay to repair or replace your physical assets if they are damaged by fire, weather and theft. It typically covers your building as well as the moveable equipment, furniture and inventory that you keep onsite. It can also include a feature to replace income lost while your property is being repaired or replaced.

The amount of property coverage you need depends on the value of your property and your comfort with risking it. You may want to consult a professional for help estimating your property’s value. Insurers use tax assessment values and other public information to assess the value of real property. Business personal property is more difficult to estimate and is usually insured at the replacement cost value, which will increase your premium.

You can often save money by purchasing property and general liability insurance together in a package called a business owners policy (BOP). There are several different BOP options available, so it’s important to find a provider that offers the right options for your industry.

Business interruption

Adding business interruption coverage to your policy allows you to claim lost income or operating expenses when physical damage caused by a covered peril requires your company to close temporarily. This can include things like payroll, mortgage or rent payments, taxes and loan payments. It can also include extra expenses such as commissions or training costs if machinery needs to be replaced, for example.

Often, there are some key criteria that need to be met in order for business interruption insurance to kick in. First, your business must sustain direct physical damage. This could mean a fire destroys your restaurant kitchen or a hurricane rips off the roof of your store. The clock for this part of the coverage typically starts as soon as you notice the physical damage, and ends when your property is repaired or reasonably expected to be repaired.

It’s important to note that revenue and operating losses that aren’t related to a shutdown aren’t eligible for claims under business interruption. These are addressed by other policies such as a commercial general liability or a business owners policy (BOP).

Employees

No matter the size of a business, every company faces the possibility of loss from unexpected events. A good insurance policy protects against losses from accidents, natural disasters and legal action.

A BOP typically covers property damage to a building, equipment and inventory. It also provides liability protection in the event a third party is injured by a business activity. Depending on the type of business, it might be necessary to have workers’ compensation, which protects employees in case they are hurt at work.

Employee coverage can include short-term disability insurance that replaces income for several months, and life and health insurance, which many employers provide as part of their benefits package. Employers can also choose to offer group insurance policies, where the employer pays some or all of the premium through payroll deductions. Insurance agents can help small businesses determine the coverage options that are most appropriate for their company’s stage and budget. They can also help manage the entire process, from application to enrollment to reporting changes and coordinating with payroll service providers. assurance entreprise