Your business must account for various risks and exposures regardless of size or sector. Still, even the most diligent and thorough risk management measures may not suppress all potential incidents. Eventually, an accident or error may occur, leading to potentially significant financial losses. Fortunately, adequate loss control measures, including business insurance, can help your company endure these situations.
How Do I Choose the Right Business Insurance for My Company?
Business insurance typically refers to several types of insurance bundled together to form a versatile financial safety net. To understand your company’s coverage needs, you should work with a qualified insurance professional, such as those at Vozza Insurance Agency, to analyze your circumstances and assess your risks and exposures.
What Does Business Insurance Cover?
After assessing your insurance needs, you and your insurer can work together to craft a suitable business insurance portfolio. Although the contents of an adequate collection of coverages may vary, the following types of insurance are among the most commonly needed for many businesses:
- Commercial property insurance—This coverage may help pay for financial losses involving your business’s physical assets, including buildings, furniture, equipment and inventory.
- General liability insurance—This coverage may compensate third parties who accrued losses as a result of your business’s operations, such as from bodily injuries or property damage.
- Business interruption insurance—This coverage may provide financial assistance if your company’s normal operations are delayed or disrupted, such as by helping to pay for rent, payroll, lost income and temporary relocation costs.
- Workers’ compensation insurance—This coverage may help pay for losses and expenses following employees’ work-related injuries or illnesses, such as your employee’s medical bills, lost income, disability benefits and your organization’s legal costs.
- Employment practices liability insurance—This coverage may provide financial aid for legal expenses (e.g., attorney fees, settlements and judgments) if your company is accused of improper workplace practices, such as discrimination, harassment and wrongful termination.
- Errors and omissions insurance—This coverage may provide financial assistance if your organization is accused of providing inaccurate, misrepresented, negligent or otherwise inadequate services or advice.
- Cyber liability insurance—This coverage may help pay for losses arising from data breaches or other cyber incidents, including breach response costs, cyber extortion payments, noncompliance fines and legal fees arising from lawsuits.
- Commercial auto insurance—This coverage may help pay for losses involving your company’s motor vehicles, including repair and replacement costs and third-party damages for which your business was responsible.
- Commercial umbrella insurance—This coverage may act as a secondary form of liability coverage that can provide additional financial assistance if the policy limits of other types of insurance, such as general liability insurance, are exhausted.
Is Business Insurance Required by Law?
In many cases, most components of a business insurance portfolio are not required by law. However, there may be many situations in which certain coverages are mandated, such as the following:
- Organizations that use motor vehicles for commercial purposes must secure minimum levels of commercial auto liability coverage.
- Many employers across the United States are required to carry workers’ compensation insurance.
- Certain professionals, such as real estate agents, may be required to carry errors and omissions insurance.
- Businesses that serve alcohol may be required to carry liquor liability insurance before being granted a liquor license.
Your company’s insurance requirements and needs may vary depending on your unique circumstances, so it’s crucial to work with your insurer to avoid noncompliance issues and penalties.
Get the Right Coverage
At Vozza Insurance Agency, we’re committed to helping your business assess its circumstances, identify its coverage needs and assemble a robust portfolio. Contact us today to get started.