The Different Types of Business Insurance
The Different Types of Business InsuranceThere are many types of business insurance policies just like there are several types of businesses. Though there are primary coverages for most businesses, each company has its unique set of risks that require insurance.
Even a business in the same industry can require a different policy. Here are the primary requirements every business needs:
- General Liability Insurance
- Commercial Property Insurance
- Professional Liability Insurance
- Workers Compensation Insurance
General Liability Coverage
Commercial general liability (CGL) insurance is a type of policy that provides coverage to a business for bodily injury, personal injury, and property damage caused by the business’s operations, products, or injuries that occur on the business’s premises.
Commercial Property Insurance
Commercial property insurance can help provide coverage for the physical assets you need to operate your business. With this coverage, business owners may be able to submit a claim to get help with replacement, repair or reimbursement costs when certain types of accidents or emergencies occur. Business property insurance covers your buildings, the contents within those buildings, and loss of income if you’re out of business due to a claim. It can help protect your business in case of unexpected accidents or tragedies like fire, theft, wind damage, or even a building’s collapse under the weight of snow.
Professional Liability
This insurance is also called errors and omissions (E&O Insurance). It is designed to protect your business against claims that a service or product your company provided caused financial harm to a client. The economic loss may be caused by mistakes on your part (errors) or because you did not perform a service (omissions).
Workers Compensation Insurance
Workers compensation insurance is meant to compensate employees for work-related injuries or disabilities sustained while working. By agreeing to receive workers compensation, employees cannot sue their employer for negligence. This policy is intended to protect both parties.
Why Do I Need Business Insurance?
It Is Mandated By Law
The law requires businesses with employees to have particular insurance policies depending on the state(s) in which the business is running its operations. Failing to run your business without insurance may result in hefty fines.
Makes Your Business Credible
Business insurance makes you appear credible to your clients.
Our office is located in Scottsdale, Arizona. We have been selling business insurance policies for a combined 70+ years. Tatum Insurance is here to help business owners find policies that protect them.