The Different Types of Business Insurance Policies That Exist Today
Are you looking to insure your business?
There is no shortage of options when it comes to business insurance. In 2020, $314 billion in net premiums was written for commercial lines.
However, if you’re a business insurance newbie, you might be surprised that there are different types of business insurance. If you set out to purchase one policy, you’ll quickly learn that you need various types of policies to effectively protect your business.
You’re probably wondering what the different types of commercial insurance are. If that’s the case, you’ve come to the right place.
This article presents a brief lowdown of the various types of business insurance policies that you can find today. Read on!
General Liability Insurance
For many small business owners, general liability insurance is the main type of business insurance. As its name suggests, it protects a business against general liability claims. It generally covers property damage, medical costs arising from bodily injury, and electronic data liability.
Running a business exposes you to various types of liabilities.
Commercial Property Insurance
Does your business own its premises, warehouse, or any other commercial property? If yes, you need commercial property insurance.
The policy protects your business’s property from fire, storm damage, burst pipes, vandalism, and theft. So if your commercial property is in a high-risk area, you might need separate policies for these risks.
Business Interruption Insurance
Various events can interrupt your business’s normal operations. These include a labor strike, natural disasters such as a storm, theft and vandalism, power outages, cyber-attacks, and lately, a health pandemic like COVID-19.
An interruptive event can mean your business closes down for some time. This can result in a loss of income.
Workers’ Compensation Insurance
This type of insurance protects your business in the event that a worker sustains an injury on the job. The coverage will compensate them for their medical costs, loss of income, and other related expenses.
Be sure to purchase workers comp insurance for small business so that you’re not only protecting your business but also complying with the law.
Cyber insurance is increasingly becoming one of the most important types of business insurance. About 50 percent of online attacks now target small businesses and most businesses that fall victim go out of business within six months.
A cyber attack can interrupt your business and result in data loss. With cyber insurance, your business is protected against losses and liabilities arising from the attacks.
Know the Different Types of Business Insurance
There are different types of business insurance, each designed to cover a specific risk or group of risks. General liability insurance will protect your business against common liabilities.
Keep tabs on our blog for more business advice.