Own a Business? Consider the 8 Following Types of Insurance

If you are a business owner, manager or officer in a large company, you already know that there are a lot of moving parts to any successful enterprise. You also understand the importance of protecting yourself and your business in case the unexpected occurs. While the exact types of insurance you need to fully insulate yourself and your company vary from business to business, there are several types that crop up more often than others. An attorney from Ver Ploeg and Marino discusses eight of these insurance categories below. For information and advice more specifically tailored to the needs of your business, contact our firm to learn more about our risk management advisory services.   

#1 General Liability Insurance

General liability insurance is sometimes referred to as commercial liability insurance or business insurance. It provides basic, essential coverage for a variety of different matters, including claims for property damages, bodily injuries, and medical payments. General liability insurance is also there for claims such as advertising injury, copyright infringement, and reputational harm.  And should your business be sued, this type of insurance can pay for legal costs incurred as well as any amount that is reached through settlement or litigation (up to policy limits). It is hard to imagine a situation where a business owner would not need this type of basic insurance. 

#2 Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, offers protection from mistakes that you may make in your work. It is especially needed for professional businesses and companies that offer advice to their clients, such as:

• Management Consultants
• Business Consultants
• Real Estate Agents
• Tax Preparation Professionals
• Accountants
• Graphic Designers

It offers protection from misrepresentation, providing inaccurate counsel, or a violation of good faith. Should you be sued, your legal costs, as well as the settlement that is reached or the amount that is awarded to the party suing you, can be paid by your professional liability insurance carrier.  

#3 Product Liability Insurance

If your business creates, sells, or distributes any type of product, you need to consider the protections provided by product liability insurance. It is there to safeguard your company should the products you create, sell, or distribute cause someone to suffer an injury or some type of damage. It is also possible that you will face a lawsuit at some point even if your product has not caused anyone to suffer an injury or loss. Our society is a highly litigious one, and many people seek money through frivolous lawsuits. Your product liability insurance can provide you with the money needed (up to policy limits) to defend you in these matters. 

#4 Commercial Property Insurance

Commercial property insurance policies vary, but it may be possible to obtain a policy that covers a litany of business property. This can include:

• Business equipment, both owned and leased
• Computers
• Furniture
• Inventory
• Supplies
• Business records
• Outdoor fixtures

These items can be covered for loss sustained through natural dangers such as fire and wind or losses sustained by the acts of others, such as vandalism. It can be very basic or extremely inclusive, and it is typically purchased along with general liability insurance.

#5 Commercial Auto Insurance

Commercial auto insurance is there to protect your company’s motor vehicles, such as trucks, cars, and vans. Coverage can be purchased to cover damages sustained by the vehicles, as well as any liability or claims of injury made against the vehicle. In addition to this basic level of coverage, it can safeguard against claims made for more comprehensive matters that are customized for your line of work. Commercial auto insurance is needed if your company uses any type of motor vehicle for a business purpose. 

If your business also uses motor vehicles that it does not own (think lease, for example), you need to look into a hired and non-owned auto insurance policy. 

#6 Business Interruption Insurance

Your business is your livelihood, and you depend on it to support yourself, your loved ones, and your employees. Unfortunately, even with the best planning, events sometimes occur that are completely out of your control, such as:

• Hurricanes
• Fire
• Floods
• Theft

When these incidents occur, and your company is unable to operate business as usual, business interruption insurance is there to help you pay the bills that do not take a break, such as your mortgage or rent, other loan payments, and payroll. Business interruption insurance is highly recommended for most businesses.

#7 Business Owner’s Policy (BOP)

When you take a general liability insurance policy and add to it a commercial property coverage policy as well as a business interruption policy, you have what is known as a BOP, or a business owner’s policy. A BOP is just a combination of these three types of insurance, which means it comes at a cheaper price than if you were to pay for each policy individually. BOPs are typically targeted toward smaller businesses, such as retail stores and restaurants. BOPs do not cover employees, however. 

#8 Home-Based Business Insurance

More and more people are forming businesses which they operate and run out of their homes. The internet has made this possible, and it is an area of commerce that is sure to keep growing. If you are a business owner that works out of your home, you should know that you cannot rely on your homeowner’s insurance policy to cover business matters. Instead, you need to look into policies specifically geared towards your specific type of business and that take into consideration that your business is home-based. 

Contact the Insurance Attorneys at Ver Ploeg & Marino

Don’t leave yourself and the business you have worked so hard to build unprotected from the unexpected. Knowing how to best protect the fruits of your labor is what we do best. Contact our firm to schedule an appointment with one of our lawyers.

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