When you run a business, you want to be sure that you are covered for any type of loss that could occur. This means that you need to take on the right kinds of insurance that will protect your assets and your revenue. Business insurance is a type of protection that enhances any other type of coverage you may already have and allows you to conduct business without the fear of catastrophic loss.
What Is Business Insurance
In general, this specific type of insurance is liability coverage for a variety of potential events. The proper combination of coverage will protect your business property, assets, and revenue.
Who Is It For?
Many business owners who incorporate their businesses or form their businesses under the protection an LLC may feel that these business structures provide plenty of protection against loss. The reality is that incorporating your business only protects your personal assets from being involved in any business losses. If you want to protect your business assets from significant financial loss, then this type of insurance is critical. Every company, no matter what size, should have this type of coverage in effect at all times.
How It Works
The best way to explain how this sort of insurance works is to give a quick example of the coverage in action. If a customer sues your company because of damage your company did while working on the customer’s property, then this additional liability insurance will pay for the legal costs and any settlement that may be awarded. This deflects the financial responsibility away from your organization and significantly reduces financial risk.
Different Types Of Coverage
The primary types of this insurance are:
• General Liability – This is the insurance that protects against legal action and damage to client property.
• Product Liability – Your company would need this insurance if you manufacture a product or distribute other companies’ products. If a customer is injured or experiences property damage due to a product defect, then this insurance covers your losses.
• Professional Liability – If you offer a service, then this insurance protects you in the event that a client tries to sue you for any errors your company made while performing your service.
• Commercial Property – This insurance protects your company’s property in the event of damage or theft.
The primary benefit of having this type of insurance is being able to conduct business without the fear of losses forcing your business to close. Another benefit to having business coverage is that it helps your company to get through unforeseen disasters and still be able to conduct business.