Are you wondering what kind of business insurance you will need for your small business? Every business owner needs insurance to protect their company from risks.
To learn more about some common types of business insurance, keep reading. Learn more about your options to find the right coverage for your business.
1. General Liability Insurance
General liability insurance is purchased by business owners to cover legal issues due to any injuries, accidents, or claims of negligence that arise. The policies of this insurance type protect against payments as a result of property damage, bodily injury, medical expenses as well as the cost of defending lawsuits. They will also cover any kind of legal bond required during an appeal.
2. Commerical Property Insurance
Property insurance is used to cover anything related to damage or loss of a company’s property. This could be due to a wide variety of events such as fires, storms, or vandalism. Property insurance covers a wide range of factors, from the building and items within it to business interruption and loss of income.
This insurance typically comes in two different forms. One is an all-risk policy, which covers a wide range of incidents except those noted in the policy. There are also peril-specific policies that will cover the loss of only the perils listed within the policy.
Some peril specific policies will be fire, flood, crime, or business interruption insurance. All-risk policies typically cover the risks average small businesses face whereas peril-specific policies are typically used by those that have a high-risk location.
3. Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is used by businesses that provide services. This liability insurance works to protect your business against malpractice, negligence, and errors in the provision of services to your customers. In some professions and industries, businesses may be required by state law to carry a professional liability insurance policy, such as physicians.
4. Product Liability Insurance
Companies that wholesale, manufacture, distribute, and retail a product are liable for the safety of their products. The product liability insurance works to protect the financial loss that could be a result of a defected product that causes bodily harm or injury. The amount of insurance a business owner needs to cover their products will depend on what and how much they manufacture or sell.
For example, a clothing retail store would need to spend much less in coverage than an appliance store of the same size, because their inventory is a more expensive loss.
Head to the link for more information on the different types of business insurance: https://avitusgroup.com/anchorage-alaska-anchorage-borough-peo.
Common Types of Business Insurance
To find the best types of business insurance for your company, consult your insurance broker or agent to find out which coverage is best suited for you. It’s important to keep your small business protected against potential risks so that you can recover your company’s functions effectively. Find out more about the best insurance options out there for your small business today.
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