Just like people should have insurance, businesses should also be insured against various risks facing their operations. Various insurance options exist to cover almost any sort of risk a business may face. It is also useful to note that providers charge different prices for each policy
Before choosing a suitable insurance policy, businesses should define the various risks that face their operations. This will help them choose a policy that will fully cover all of their operations should any disaster arise. Below are the various types of business insurance policies in market today and their distinctive features.
Business owners or even their employees can be involved in acts of negligence. These may include accidents, injuries and others, which could result to property damage, medical expenses and lawsuits. General liability will cover expenses associated with such claims.
This is suitable for companies that manufacture products and those who distribute and sell in wholesale or retail. This kind of insurance policy will protect against any possible financial loss should the product be defective. Defective products can cause bodily harm and other injuries where the company is held liable. Insurance agencies will calculate premiums depending on the kind of product the business deals with.
Commonly referred to as errors and omissions insurance, it is suitable for every business in the service industry. Sometimes, the business is charged with malpractice, negligence and other errors committed when serving customers. Most governments demand some professions to have such liability coverage. A good example is in the medical field, where some states require physicians to have malpractice insurance.
Commercial Property Insurance
It is a business liability cover against damages on company property either through fire, wind, smoke, vandalism and other causes. Various items are covered in the term “property” which includes computers, company documents, lost income, business interruption and money. Property insurance policies are divided into two depending on the specifications of the policy. The all-risk policies will generally cover common risks to average businesses, while peril-specific policies insure only those risks as specified in the policy. The latter is purchased by businesses that may face a higher level of risks depending on their location.
Home-based business insurance
It is important to note that homeowners' insurance policies do not necessarily cover businesses that are based at home in case of any loss. For companies running their operations from the house, it is advisable to get an additional cover for the business even if there is an existent home insurance policy. An alternative is talk to the home insurance provider and ask if they can tailor the existing policy to cover the business.
The above types of business insurance will cover most of the risks an enterprise will face. It is important for businesses to speak with their insurance broker or agent and find out what kind of coverage they need and how much is suitable for them. It is important for the agent or broker to understand clearly what risks face a business before recommending a suitable policy. For personalized solutions to your Cleveland business insurance needs call Regency Insurance Agency directly at 800-350-6876 and we'd be happy to help you.