What Is Business Insurance And Benefits

Like any other type of insurance, business insurance is a type of financial product offered by insurance companies to protect business owners from unforseen events - eg. Public Liability, Management Malpractice.

It's important to have because it can give business owners a sense of closure over the unknown. With that said, it's important to speak with an insurance professional to make sure any type of insurance you decide to take out is right for you and your business.

WHY YOU NEED BUSINESS INURANCE
Business insurance protects your company from losses that could significantly impact your operations. Examples are a fire that destroys your company's building and a large bodily injury claim that results from a slip-and-fall incident. Such events can be very costly. If they aren't covered by insurance, they could bankrupt a small company.


Business insurance does not cover every loss. It is not intended to cover small losses that your company can easily absorb. For this reason, many commercial policies contain deductibles. An example is commercial auto physical damage coverage. Suppose you have purchased comprehensive coverage on a company truck. If a rock nicks the truck's windshield, the cost of repairing the glass will likely fall within the deductible that applies to your comprehensive coverage.
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Some risks are excluded under business policies even though they may cause large losses. For instance, earthquakes and floods are excluded under standard property policies because they can cause many large losses within a small geographic area. Coverage for these perils is available under specialized insurance policies. A few risks cannot be insured at all. Most businesses cannot insure their commercial property against damage caused by war, radioactive contamination, or seizure by a government authority.

Business property insurance
 helps protect your business's buildings and personal property. This might include furniture, tools, equipment and inventory.

Business income insurance
 helps replace lost income if you close temporarily due to a covered loss like theft or property damage from a fire. It can also help you continue paying expenses while your property is replaced or repaired.

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Multinational insurance
can help streamline coverages if your business has operations outside the U.S. This coverage from The Hartford creates a single point of contact for all your business insurance needs. Our Multinational Insurance policy offers coverage in over 150 countries.

Surety & fidelity bonds –
 A surety bond is a contract between three parties that helps ensure a project gets completed or a commitment is met and guarantees a payment if they are not. Fidelity bonds are a form of insurance that protects businesses from financial loss due to employee theft or fraud.

Home-based business
 insurance helps cover the costs of property and liability risks to businesses that operate out of a business owner’s home. If you keep supplies, equipment or other business property at your home, or have customers stopping by, consider adding this coverage.
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Professional liability insurance
helps cover costs related to claims that your business made errors in providing its services. For example, if you make a clerical error and it causes a client to lose thousands of dollars, professional liability insurance can help cover the costs if the client makes a claim. A business doesn’t need to do anything wrong to be sued. Depending on the scenario, coverage would apply to defend a business if sued.

Workers' compensation insurance helps cover costs to employees while they are unable to work after suffering a work-related injury or illness. Workers’ comp from The Hartford also provides programs to help employees prepare to return to work after their absence. And, if a worker's family decides to sue your business, Workers’ comp can also help cover the legal fees.

A commercial auto policy helps protect your business from the costs of a work-related auto accident. If you or an employee is in an accident while driving for business reasons, commercial auto can help cover the costs that results from the accident.

Buy Insurance

Your agent or broker should recommend coverages appropriate for your business. He or she should complete applications and submit them to one or more insurance companies. When the insurers provide quotes, your agent should help you review and compare them so you can choose the best options. Once you have made your selections, your agent may collect the premiums from you or instruct you to pay them directly to the insurer.

Review Your Insurance Coverages Regularly

Your business isn't cast in stone. It will grow and change over time. Your insurance policies need to reflect those changes. You may need to buy additional coverages, or increase or reduce your limits. Meet with your agent or broker once a year, before your policies renew, to assess your coverages.
By having the right insurance in place, a business can avoid a major financial loss due to a lawsuit or catastrophic event. Check with your insurer to find out what forms of insurance are advised for your type of business and put those plans in place as soon as possible.

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