The journey of starting your own business is as exciting as it is fraught with worry. Operating a business comes with a certain amount of risk, which should be taken into consideration since there are times when it cannot be prevented. During such a time, it is best to find yourself prepared with the most beneficial business insurance policy. Alchemy Insurance Agency can help you in narrowing down the types of policies you will need based on your individual business.
Types of Business Insurance
Though as a business, you may find not all of these policies beneficial, they should nevertheless undergo a review:
- General Liability Insurance
- Professional Liability Insurance
- Property Insurance
- Business Interruption Insurance
- Product Liability Insurance
- Worker’s Compensation
- Commercial Auto Insurance
- Cyber Liability Insurance
General Liability Insurance
As the name of the policy suggests, this type of insurance will cover a business against vast risks such as bodily injury all the way to property damage. This policy is essential for any business because no matter how careful a company can be, no one is impervious to risk.
Specifically, this type of insurance will cover some of the following:
- Bodily injury or medical bills
- This will only cover the cost of medical bills for those who are non-employees, but have sustained some sort of injury while on your property
- Property damage to a third party and not the business’ property
- Personal and advertising injury
- Under this umbrella, it will help cover cost in cases of libel or slander, malicious prosecution, wrongful eviction, violation of privacy, or copyright infringement
An accident can happen at any time and any place which means a company has to be prepared. It is also best to remember that though this policy does cover many eventualities, it is best to continue exploring policies you could use in conjunction for more specific types of coverage.
Professional Liability Insurance
Another name for this type of insurance is errors and omissions because it covers a business should any of their advice or services lead a client to any damage financially. It is one of the most beneficial insurance policies for companies that rely on providing advice to clients where there is the probability of the client losing money as a result.
To be more specific, this policy will go beyond what is covered in the general liability policy by including:
- Professional negligence
- Violation of good faith
- Inaccurate advice
Unlike general liability insurance, this policy will cover the property of the business that holds the policy. Most small businesses will find themselves owning some type of property that will need protection, such as a commercial premise, some supplies, or equipment. The nature of life is such that anything unexpected can happen to range from a flood to a fire that could potentially cause catastrophic damage.
Business Interruption Insurance
It is common to worry about property or equipment that might be damaged, but a business also has to remember that if that were to happen, not only is it losing property, it is also losing out on potential money it could have earned during downtime. Business interruption insurance helps a business recover some of the money it had the potential to make until it is back up and running. For a small business, this could be a make-it or break-it.
Product Liability Insurance
A business will always stand by the product that it releases to the public; after all, that is the best business practice. However, no matter the precautions are taken, there are times when a product may malfunction, causing the business to face a lawsuit. For most companies, this could be potentially covered by general liability insurance, but some won’t. Product liability insurance will help cover any potential financial damage as a result of a specialized product malfunction, such as in the case of medical devices or pharmaceutical drugs.
Though the requirements are different in each state, as a best practice, if a business has any employees, it will require worker’s compensation to protect its workers. Some of the costs that are covered by worker’s compensation include:
- Medical Bills
- Physical Therapy
- Lost wages
Not only does this insurance assist employees should they find themselves hurt on the job, but it also works as a potential lawsuit deterrent.
Commercial Auto Insurance
Commercial auto insurance helps to protect a small business that uses a vehicle for any work-related purpose. Not only does it cover the cost of the car in case of an accident, but it will also help cover any potential lawsuit as a result of such an accident. Most policies can be tailored to meet the specific needs of the company, but usually will cover costs in cases of collision, comprehensive, liability, or uninsured motorist situations.
Cyber Liability Insurance
The leaps and bounds that the world takes concerning technology have forced us to develop a new type of policy called cyber liability insurance. This insurance helps to cover a small business in the event of a data breach or cyber attack.
As an example, plenty of companies have to keep sensitive information within the confines of a computer or the Internet. Hacks are not an uncommon occurrence but could lead to potential disasters. Someone who is looking for such information will most likely not use it for any good and could end up compromising internal files or those of clients. This insurance will work to cover the costs associated with notifying clients as well as the cleanup that may be required after such a breach has occurred.