When you own and operate a business, you will always face unforeseen challenges, manage liabilities, and mitigate risks in your venture. It’s not only about increasing profits and sales because it’s also about avoiding financial losses. You also have to consider protecting not just your company and property, but also the well-being of your workers.
Simply, there’s a lot to consider and think about when running a business. It’s a good thing that business insurance policies exist. If you secure your business with one or more policies, it will surely lessen your worries should unfortunate events happen to your business, operations, or workers.
There are different types of business insurance policies and if you’re a business owner, it’s best if you learn them and understand what they cover. That way, you’ll be able to see what policies your business may need.
Commercial Property Insurance
Commercial property insurance covers business property damages caused by natural disasters, fires, criminal vandalism, and the like. The insurance applies to the property itself and any items inside the building. This includes the company’s inventory, machinery, equipment, electronics, and furnishings.
Business owners could get additional coverage for losses related to the break-ins too. If they do that, they’ll have coverage for any lost cash-on-hand or personal belongings that was kept in the building. Some commercial property insurance can cover accidents that happen around the business’ premises, but there may be limits to its coverage.
If business owners want coverage for an item with a value that exceeds the maximum benefit of the policy, they need to add a rider in the policy for it to be covered. An appraisal needs to be conducted to gauge the item’s monetary value. This is so that the owner can receive the correct compensation should the item get lost, stolen, or damaged.
Worker’s Compensation Insurance
Federal laws require all business owners to purchase and maintain worker’s compensation insurance if they have employees. This is because the insurance keeps workers safe as it ensures that the business can support them if any work-related accidents happen. The insurance policy can cover medical bills and wage replacement, if needed.
Although, business owners should know that there are strict guidelines that they and their workers must adhere to before availing worker’s compensation insurance coverage. If a worker is injured on the job, the business owner is required to send the injured worker to an emergency room or urgent care facility for a diagnosis. The worker must also submit to alcohol and drug testing to seek further medical help. If the worker cannot return to work, the claims adjuster will test the claim first. Once the worker is deemed eligible by the claims adjuster, that’s the only time the worker can receive wage replacement.
With worker’s compensation insurance, the business will also receive funds for a settlement if the worker sustains any life-altering injuries or permanent disabilities. This is important because the law requires businesses to provide a settlement if it is ordered by the court.
There are also cases where workers who are denied coverage seek legal help to sue the business. If the worker wins, worker’s compensation insurance helps the business by providing the settlement. This lowers the risk of significant financial losses due to worker’s compensation lawsuits.
General and Global Liability Coverage
General and global liability coverage protects the business against financial losses linked to legal claims. The insurance can cover premises liabilities, product liabilities, breaches of contract, and damages incurred while providing services to clients.
This is the insurance business owners need in cases where a customer is injured using the company's products, has a slip and fall accident within the business premises, or experiences bad service caused by employees. The business owner can use the insurance coverage to pay settlements for lawsuits of such incidents.
If a business owner will avail this insurance policy, the insurer will first conduct a risk assessment according to what the business does. If they sell products, the business needs protection against lawsuits when a consumer gets injured. If they operate a retail store, slip and fall accident protection is a must. Basically, how much coverage they need in their policy depends on the total risk the business faces.
Professional Liability Coverage
Professional liability coverage is a must for businesses that offer advice to customers or clients as a part of their operations. This is especially important for companies that have professionals such as doctors, IT consultants, attorneys, and financial advisors.
Claimants can file suits because of negligence, misrepresentation, or inaccurate advice provided by professionals. Professional liability insurance makes sure that the business is protected if a customer sustains an injury, incurs loss of money, becomes a victim of a cybercrime, or suffers a blow to their reputation because of the advice from the business’ professional/s.
Any business that offers advice or counsel to clients needs this coverage to protect their staff members and the business’ reputation. Without it, the company could suffer serious financial losses, lose their credibility, and possibly face a complete shutdown of the company.
Group-Rate Health Insurance Plans
Group-rate health insurance provides health insurance coverage for workers at a discounted rate. This type of insurance program requires the employer to pay a portion of the insurance premiums while the workers will pay the rest. A higher number of employees enrolled in the program can reduce the monthly premiums for everyone.
Business owners have the option to add coverage for dental and vision care in the benefits package. However, most insurers give workers the choice for additional policies they want beyond the basic health coverage provided by the company. Workers can also choose between a preferred provider organization (PPO) and a health maintenance organization (HMO) if the business owner provided selections.
If you have several employees, a group-rate health insurance plan is an efficient way to cut costs for workers and help them get the medical coverage they need.
Cyber Liability Policies
Cyber liability policies protect the business against the financial fallout of a cyber attack. Customers who fall victim to a cyber attack caused by a business’ shortcomings receive a payment according to the financial losses incurred. To cover for that expense, the business can use the coverage from a cyber liability policy to prevent loss of credibility after the incident. This insurance policy not only protects the business, but also its customers.
The mentioned policies are the types of business insurance your company may need. As a business owner, choose insurance policies that will directly protect your assets and properties. It can give you peace of mind, a thriving business, and happy customers. If you need help in understanding business insurance further, let us at CIII Insurance Services help you. We can even assist you in securing your insurance policies.
CIII Insurance Services provides a broad range of Commercial, Cybersecurity, Employee Benefits, and General Liability products. We partner ourselves with some of the finest carriers to deliver these products to you.