Selecting the right insurance for your business is a vital decision for a number of different reasons. After all, it’s what protects you, your employees, and your company in the event of an accident.
If you have just started your own business, you may not know what specific insurance coverage you need.
On the other hand, if you don’t have insurance, you may find yourself in a situation where you must pay out a large amount of money. For some, the amount may be so great that you have to declare bankruptcy and close your business.
However, determining what type of insurance is right for your business isn’t always easy. Different industries require different types of commercial insurance. So, before you purchase one you should spend some time learning what type of insurance you actually need. You must also take into account factors such as price and discounts.
Let’s look at some of the most common types of business insurance coverage and which types of businesses might need these options.
4 Common Types of Business Insurance Coverage
While there are many different types of insurance coverage for businesses, many companies need one or more of the following:
1. Auto Insurance
Any business that requires its employees to make deliveries or use a vehicle for travel will want to have a business auto insurance policy. Coverages may include the vehicles the company owns as well as personal vehicles that are being used for business, but there are some exceptions.
Businesses that offer delivery - such as restaurants, florists, contractors, repair services, and any other company that sends employees to any location while on the clock, will need to have auto insurance.
2. Property Insurance
If you own a building, apartment, or other type of property, you will want to have property insurance.
This protects the building, including the interior and exterior, provides general liability coverage, and may cover a number of other disasters or problems. These coverages are generally fairly flexible and can be customized to fit your particular needs.
Property owners need to have this business insurance coverage in place, even if it’s only a bare-bones coverage, in order to protect them in the event of a disaster. For those who own apartment complexes, there are similar types.
3. Cyber Insurance
Cybercrime is always a threat, both to personal and professional entities. It could happen at any point in time to your business, leaving your information and that of your customers in peril. If you want to avoid the effects of problems like ransomware, malware, or an external intrusion, you should strongly consider cyber insurance.
Threats to your business can come in any form. It may be an employee checking their personal email on company servers, or it could be from someone hacking in from the outside. The best way to protect your business is prepare for this type of threat. That way, if it happens, you and your customers are safe.
4. Liability Insurance
Liability insurance is one of the most common types of insurance a business needs.
It protects the business against most lawsuits, including accidents that may occur, actions taken by your employees towards others, and damages caused by your products. Liability insurance can protect against a number of other events, too, depending on what type of policy you have.
Nearly every business needs to have a general or umbrella liability insurance coverage. The number of protections this type of insurance offers can save a business from a number of situations that would otherwise lead to bankruptcy.
Find the Best and Affordable Business Insurance for Your Industry
While it’s possible you may need a number of the coverage types listed above, depending on your particular industry, there may be additional insurance your company might need. Consult an insurance expert to make certain you have all of the business insurance coverage types you need in place.
If you want to learn more about business insurance coverage types, contact Hardenbergh Insurance Group today to discuss your needs with an experienced insurance professional.
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