Property Insurance
Property insurance compensates you if the property you use in your business is lost or damaged as the result of various types of common "perils," such as fire or theft. Property insurance covers not just a building or structure but also what insurers call "personal property," meaning office furnishings, inventory, raw materials, machinery, computers and other items vital to your business operations. Property insurance can do more than protect your physical assets. It may also provide operating funds during a period when you are trying to get the business back on track after a catastrophic loss. Depending on the type of policy you have, property insurance may include coverage for equipment breakdown, removal of debris after a fire or other destructive event, some types of water damage and other losses.
Liability Insurance Any enterprise can be sued. Someone may claim that your business caused them harm as the result of a defective product, an error in a service or disregard for another person's property. Or a claimant may allege that you created a hazardous environment. Your liability insurance pays damages for which you are found liable up to the policy limits as well as attorney's fees and other legal defense expenses. It also pays the medical bills of any people injured by your business
Business Auto Insurance Many personal auto insurance policies exclude coverage if the vehicle involved in an accident is used mainly for business. A business auto policy provides coverage for autos owned by a business. The insurance pays any costs to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits. Depending on what kind of coverage you buy, the insurance may pay to repair or replace your vehicle because of damage resulting from accidents and other events.
Workers Compensation Insurance In all states but Texas an employer must have workers compensation insurance when there are more than a certain number of employees, varying from three to five, depending on the state. Workers comp insurance, as this coverage is generally called, pays for medical care and replaces a portion of lost wages for an employee who is injured in the course of employment, regardless of who was at fault for the injury. When a worker dies as a result of injuries sustained while working, the insurance provides compensation to the employee's family.
A businessowners policy(BOP) A BOPcombines coverage for all major property and liability insurance risks and can be customized by adding several coverages into one package policy suitable for most small businesses.
A BOP includes business income insurance. This compensates you for the business income you may lose following a disaster. Disasters typically disrupt operations and may cause you to vacate your premises. The BOP also covers the extra expense you may incur if you must operate out of a temporary location.
Only small- to medium-sized businesses that meet certain criteria are eligible for a BOP. Insurers consider include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on those factors plus business location, financial stability, building construction, and security features and fire hazards.
Errors and Omissions Insurance/Professional Liability
If your business involves services such as giving advice, making recommendations, designing things, providing physical care or representing the needs of others, you could be sued by a customer, client or patient claiming your failure to perform your job properly had injured them. Errors and omissions or professional liability insurance covers these situations. The policy will pay any judgment for which the insured is legally liable, up to the policy limit. It also provides for legal defense costs, which can be substantial, even where there has been no wrongdoing.
