If you're starting your own business, you'll need to have a business insurance policy to protect you against property damage, lawsuits, lost income, and more. In some cases, you may even be required to have a policy. Learning what a standard insurance policy for businesses covers will help you determine how best to protect your company.
This type of insurance policy is almost mandatory for any business that has any dealings with the public at all because it covers costs related to property damage and bodily injury claims that are filed against your company. For example, if your product harms a customer, this policy would pay for you to defend your business in a lawsuit and for any resulting monetary damages. It would also cover damages if your employee accidentally broke something in a client's home.
A business income insurance policy is designed to cover lost income due to fire, wind damage, or theft. For instance, if your company is not able to operate for a time because the building was damaged in a fire, this policy would cover the revenue you would have generated during that time. It will allow you to continue to pay employee wages and other operating expenses even if you're not actually able to operate.
If your business uses automobiles in any capacity to transport employees to and from work sites or for errands, you must have commercial automobile insurance. This type of policy pays for damages and bodily injuries related to motor vehicle accidents that are deemed to be the fault of your employees. It would cover damage to other vehicles, property, and medical bills. You need to make sure all employees and all vehicles are properly covered.
You are required to have workman's compensation insurance if you have any employees working for you. This will cover medical bills, lost wages, and other costs related to workplace injury, illness, or death. In addition, if an injured employee files a lawsuit against your company, a workman's compensation policy will cover your legal costs to defend against that claim or pay out any resulting monetary damages. Disability benefits and funeral expenses are other costs this type of insurance covers.
One of the most popular types of insurance plans for businesses is the business owner's policy or BOP. This is a combination policy that includes property and business liability insurance in one plan. This type of policy combines the coverages of a general liability policy and a business income policy to protect your company against loss of income from fire, wind, or theft, and from claims of property damage and bodily injury.
It's usually more cost-effective to purchase a BOP than the two policies separately, which is why many business owners choose the all-in-one plan. However, they still need to purchase automobile insurance and workman's compensation insurance separately to be fully protected.
Starting a business is exciting! Be sure to protect your new venture by obtaining adequate insurance for your business. Contact the Society Insurance Network to discover how our policies can provide full protection for your company.