Types of Business Insurance
In 2021, net premiums written in the U.S. were 42,680,678. This number continues to climb year after year.
As a business owner, it’s in your best interest to have business insurance, but what kind? You have plenty of options, from workers’ comps to automobile insurance, and they can become expensive fast. Read this guide on the different types of business insurance to help you choose the right option today!
Commercial Business Insurance
Commercial property insurance pays for loss or damage to property, such as inventory or office buildings. Certain damage, such as from water or flooding, is excluded. Natural disasters that cause damage to equipment, inventory, and buildings are covered.
Worker’s Compensation Insurance
Many areas require this insurance for accountants and other professionals. In case someone gets hurt on the job, they’ll have coverage. It covers medical expenses and workers’ income when they can’t work.
Cybersecurity Liability Insurance
This commercial insurance is gaining popularity due to increased cyber-attacks. If your data is compromised, you’ll have protection under this insurance.
It’ll cover expenses incurred by customers who have their data taken, including operational expenses. This includes cybersecurity and data breaches.
Coverage varies depending on the policy. It can help public relations, improve digital security, and recover data.
There’s also data breach insurance. It helps businesses respond to data breaches. It can also be called coverage cyber insurance.
Coverage can include:
- A public relations campaign
- Identity theft monitoring services
- Notifying individuals impacted
General Liability Insurance
This business insurance could cover advertising injury, property damage, product operations, medical payments, and more. Most businesses should have this form of insurance. The rates will depend on the facts about your business.
Contractors’ Professional Liability Insurance
For construction and design-build businesses, this insurance is vital. In most cases, it’s required.
It protects against errors or losses from engineering, designing, and constructing a building. It could also protect you from errors by third-party vendors with a project.
Product Liability Insurance
Product liability insurance gives you more protection than a regular warranty. If a product causes injury or damage to a third party, it offers you protection. This includes lawsuits related to products.
Commercial Auto Insurance
Commercial auto insurance protects company vehicles when you or your employees drive them. It can include bodily injury claims and property damage. Personal car insurance doesn’t cover company-owned vehicles.
Commercial Umbrella Insurance
If you’ve maxed out your liability coverage, umbrella insurance takes over. It’s best for large businesses that could be sued for large amounts. Coverage includes large lawsuits with settlements higher than coverage from general liability insurance.
The Different Types of Business Insurance
After exploring this guide on the different types of business insurance, you should better understand your options. Speak to an insurance agent specializing in commercial insurance to see your options.
Would you like to read more informative content for business? Then, be sure to check out our other articles today!
