Overview of Business Insurance Policies

Answer 1

Normal business operations expose companies to various types of risks due to accidents or mistakes. Litigation filed to recover losses from property damage or personal injury can compromise the future viability of your company. Business insurance protects owners, employees and company assets from financial distress. Insurance also enables businesses to comply with governmental regulations.

General Liability Insurance

Companies purchase general liability insurance to protect against litigation due to injuries, accidents, property damage, claims of negligence, slander and libel. These policies also cover medical expenses and the cost for defending against law suits.

Professional Liability

Companies that perform a service for clients or customers need coverage for omission or error. This policy protects you against litigation for malpractice, mistake, oversight and negligence that occur while performing client services. It also covers directors and corporate officers from personal liability for claims filed against the company. Medical malpractice insurance is an example of professional liability insurance required in most states.

Product Liability Insurance

Companies that sell, distribute, wholesale or manufacture a product may be legally responsible for its safety. This insurance shields you against monetary losses that occur because a defective product caused injury or bodily harm to customers. A shoe company would have less risk than a pharmaceutical company.

Commercial Property Insurance

Property insurance covers the damage or loss to company property caused by to civil unrest, vandalism, theft, smoke, fire and natural disasters. Many insurance companies have a broad definition of property. Coverage may apply to buildings, inventory, supplies, company papers, money and lost income due to business interruption. You can purchase an all-risk policy to protect against a broad range of situations and disasters or you can purchase a peril-specific policy that covers you for the particular events specified in the policy.

Insurance to Protect Employees

Companies can purchase several different types of insurance to cover employees. Disability insurance coverage enables employees to continue receiving a paycheck during an illness or injury. Other examples of employee insurance are health insurance and worker"s compensation.

Evaluating Insurance Quotes

You can find the coverage that you need and save money by working with professionals who specialize in business insurance. A licensed insurance professional can help you customize your insurance policy to cover your specific business risk. Search online and compare the policy terms, features and benefits of each quote before deciding which policy best meets your company's needs.