The Many Types of Business Insurance
Business insurance comes in
many forms. There is no standard, one-size-fits-all policy. The coverage that you
need depends on what your company owns, the products it sells and/or the services it
Practically all businesses need a liability policy. This policy covers
accidents for which your company is responsible. A customer slips on the
ice in front of your building. Your employee knocks
down a child while sweeping the floor. Those are
Any automobiles or equipment
used by your employees must be insured. You may need full
coverage or liability only, depending on the age of the vehicles. These policies may be
separate or included as addendums in a larger policy.
Those companies that have branches outside of their own country need
expatriate policies. The policies provide protection for automobiles, property, health and other aspects
should a coup or war arise. Other damages may be covered depending on how the policy is
One type of business insurance
is extremely popular and practically indispensable. It is called financial
loss. A financial loss policy provides protection against certain risks.
A hurricane interrupts
production or makes it impossible to make sales. A fire in a factory
causes delays and stops production temporarily. This policy will
provide some income during the downtime.
Your company could purchase a
policy that protects against the costs of legal action. This is referred to as
a Legal Expenses policy. Malpractice coverage is something with which most doctors are intimately
familiar. Other healthcare providers may benefit from this kind of policy as
well. Depending on how it is written, it may include a Legal Expenses Policy or make one
Some industries need pollution
coverage. These policies are something like the liability policies mentioned
above. They cover the accidental release of hazardous material that injures individuals or
their land, air or water.
The policies also cover cleanup if that is
necessary. For businesses that handle or transport hazardous material, it’s good coverage to
Business insurance can cover
any physical property owned by the company, such as land and buildings. It can cover the
contents of buildings or storage sheds.
It is always important to read
the policy carefully to be sure about what is covered. If your employees
handle expensive breakable items, you will want to make sure that those items are covered.
In areas where shoplifting or theft is a problem, you may need a
special policy. Sometimes, that kind of business insurance is difficult to get. But you should be able
to get some kind of protection if you shop around.