Your business has to be protected against any unexpected event resulting in your investment in business being at risk. A natural disaster, death of a partner or a key employee, a lawsuit are such events which can adversely affect your business.
The different coverages available to a business owner to protect against such unexpected losses and insure continuity in operation of business are collectively called Business Insurance.
The major types of Business Insurances are:
- General Liability Insurance:General Liability Insurance is an insurance policy that covers the claims arising from an insured person’s liability due to damage or injury to a third party, caused as a result of negligence or acts of omission during performing his or her duties or business.
You should get the right General Liability Insurance to make sure that your business is adequately protected.
- Commercial Auto Insurance: Commercial Auto Insurance covers vehicles owned by or operated for your business purposes. It provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise. Commercial Auto insurance will also provide financial protection against theft of vehicle and possible damages to vehicles sustained as a result of events other than traffic collisions.
- Commercial Property Insurance:Commercial Property Insurance covers any type of commercial property. Commercial Property Insurance protects your commercial property from losses due to perils such as fire, theft and natural disasters. It is very important to understand the risks that your commercial property is exposed to and identify and choose the right coverage.
- Professional Liability Insurance: Professional Liability Insurance protects professionals against negligence and other claims initiated by their clients. A General Liability Insurance do not protect against claims arising out of business or professional practices such as negligence, malpractice or misrepresentation. That is why professionals having expertise in specific area such as accountants, lawyers and physicians require Professional Liability Insurance. Professional Liability Insurance is also known as Errors & Omissions(E&O) and Professional Indemnity Insurance.
- Business Owner’s Package:Business Owner’s Package (BOP) is an insurance package that bundles the basic coverages required by a business owner. This is suitable for small and medium sized businesses. Usually the premium for a Business Owner’s Package policy will be lesser than the total cost of the individual coverages taken separately.
- Workers Compensation: Workers Compensation Insurance covers medical and rehabilitation costs and lost wages for employees who are injured at work, as required by law in all states. The wage replacement and medical benefits are provided to eligible employees in exchange for mandatory relinquishment of the employee’s right to sue the employer for negligence.
- Group Health Insurance:Group Health Insurance is a policy that is purchased by an employer and is offered to eligible employees of the company, as an additional benefit for working for that company. The coverage is often extended to cover the employee’s family members also. Group Health Insurance plan is a major part of employee benefits packages that employers provide for their employees.
- Group Life Insurance: Group Life Insurance is a Term Insurance covering a clearly defined group of people, such as employees of a company, members of a union or association, or members of a pension or superannuation fund. The underwriting is done for the group as a whole and not for individual members separately. Individual proof of insurability is not normally a consideration in the underwriting. Rather, the underwriter considers the size, turnover, and financial strength of the group.
- Group Disability Insurance:Group Disability Insurance provided by an employer to his employees provides the employee a regular income replacement in the event of an eligible disability resulting from illness or injury. Coverage is generally provided for Short Term Disability & Long Term Disability.