Beyond The Obvious: Other Forms Of Insurance Coverage Your Business May Need
As a prospective businessperson, you have probably heard of commercial insurance coverage such as general commercial liability, commercial auto insurance, property insurance, and workers compensation insurance. These are some of the well-known insurance coverage for businesses, but they are neither the only ones nor the most important ones. Here are other forms of insurance coverage to consider for your business:
Loss of Business operations
This coverage protects you from losses you may experience if you have suffered some form of property damage and you can't continue with your business operations for some time. For example, if you run a moving company and your loading equipment breaks down, you may lose some money until the equipment is fixed. In such a case, loss of business insurance coverage will protect you from the losses.
More and more business operations are getting digitized and most data are stored in the cloud. This exposes businesses to different risks. For example, cybercriminals can breach your virtual security and steal important data from your business. Other criminals may also hack your computers and expose sensitive information to the public. Then there are also those who may cripple your business operations and demand a ransom. Data compromise insurance may protect your business form losses associated with such virtual attacks.
In this day and age when terrorist acts seem to be making headlines every now and again, there is always a risk that your business may become a victim of terrorism. For example, a homegrown terrorist may blow up the building in which your offices are located, leading to financial loss. Fortunately, terrorism insurance coverage can protect your business from such losses.
Directors and Officers Insurance
Business loses do not always stem from property damages or disasters; business loses can also occur due to the actions of the people running the business. The losses can particular be huge if the responsible persons are in senior management. That is why there is directors and officers insurance coverage for businesses; the coverage will protect your business if such people make moves that end up causing your business losses.
Starting a business is not easy; you don't want to risk your investment by exposing it to different risks or disasters. Don't just rely on commercial general liability as your own coverage. The best thing to do is to sit down with an insurance agent, go through your business needs and operations, and decide on your business insurance needs.