Having commercial insurance coverage is a must for any small business. However, choosing the right insurance coverage is just as important. Your property, employees, and company need to be protected at all costs.
Commercial insurance is a must if you want to manage business risk properly. No one can predict what will happen in the future. People get sick or injured, employees and clients sue, business assets are stolen, and buildings get damaged, destroyed, or vandalized by Acts of God or criminals. You may also require different types of insurance depending on the kind of company and industry that you’re in.
Today we will discuss the different commercial insurance products that you need to know about in 2021 to make a more informed decision before purchasing insurance for your business.
If you would like to cover legal fees and medical expenses if you become injured in an accident in the future, then you should strongly consider general liability insurance. General liability insurance will also cover advertising injury, which will protect you from libel and copyright infringement.
Commercial property insurance is a must if you own and operate a company with many physical assets or commodities. The type of coverage you should obtain will depend heavily on how much property you need to insure. Being underinsured is a fairly common problem amongst many business owners.
Commercial Auto Insurance
If you need to regularly transport products or people as part of your business, you should obtain commercial auto insurance. For example, commercial auto insurance would be beneficial if you own and operate several company cars, vans, or trucks.
You may also want to look into obtaining a commercial fleet insurance policy if you own a large fleet of vehicles. By doing so, you will be able to enjoy comprehensive coverage for your entire fleet.
There are many auto insurance benefits and they will, at the very least, provide you with peace of mind so that you can focus on other areas of your business.
Business Interruption Insurance
If you want to ensure that your business will be protected in the event of a disaster, such as a fire, flood, or earthquake, then you should purchase business interruption insurance. By doing so, you will be provided with a safeguard that will allow you to get back on your feet in the briefest delay.
The money provided can be used to temporarily relocate your business while your primary business property is being repaired. It can also be used to replace the money that you would have earned had your business still been operational.
Workers’ Compensation Insurance
Some entrepreneurs believe that workers’ compensation insurance is not very important and is a waste of money. Many small business owners are hesitant to obtain workers’ compensation insurance because they only have a few employees.
They may also believe that an accident would never take place on their property, or they may think that they will be able to cover all the medical expenses themselves in the event of an accident.
In truth, workers’ compensation insurance will protect you and your employees, regardless of the number of employees or how many safety hazards are present on-site.
Employment Practices Liability Insurance
Employment practices liability insurance should be strongly considered if you work with people. Settlement damages and costs will usually be covered with employment practices liability insurance, and legal defense fees are also usually covered.
Employment practices liability insurance is also recommended if you work with consumers and vendors as well.
Cyber Liability Insurance
Small businesses, in particular, should strongly consider getting cyber liability insurance to protect their company. Most multinational conglomerates have the staffing and resources required to protect their enterprises from cybercriminals.
Cybercrime is on the rise. Increased connectivity, rapid changes in technology, and widespread digitization have made it easier to connect with employees, clients, and prospective customers, regardless of where your business is located.
However, the newfound advances in technology have made it easier for cybercriminals to commit fraud, steal information, and deceive users of your products and services.
Startups and other small businesses will likely lack the means to protect their companies from a cyberattack. Identity theft vulnerabilities can be taken care of via cyber liability insurance.
While big and medium companies will also benefit from cyber liability insurance, smaller companies, in particular, will need it to prevent a privacy breach that can force the permanent closure of their enterprise.
Management Liability Insurance
Management liability insurance is designed to protect officers and directors if they are sued while running a nonprofit company or traditional enterprise. Management liability insurance will cover all of the damages and costs incurred due to lawsuits or wrongful action charges filed against members of a board of directors.
An organization’s officer will also be protected in the event of wrongful action charges or lawsuits filed against them.
Taking a Proactive Stance
Whether or not you work from home, lease a building, or own a building, you should strongly consider purchasing business property insurance. Business property insurance will protect your building and all of the assets that are found within.
Outdoor items, including signs, posts, and fences, will also be covered if stolen, damaged, or vandalized.
Understanding the insurance process can be very difficult and intimidating. The process can also be tedious, and you will likely want to focus on growing your business and attracting new customers instead of shopping around for insurance.
It is important to work with an insurance company that has your best interests at heart. They will find the ideal insurance package for your unique business needs, which includes your budget. They will work hard to make the insurance process as painless and easy as possible so that you can focus on what matters most.