Understanding The Intricacies Of Insurance

4 Types Of Business Insurance You May Need

It is important to have the right coverage in place when you are running a business. There is a wide range of different types of business coverage that you can purchase, which is why it is important to know the different types of insurance you can get as a business owner.   

Type #1: Professional Liability Insurance  

One of the most common types of business insurance, and one of the best types of business insurance to carry, is professional liability insurance. Professional liability insurance is essential to carry as a business owner. It helps protect you if you make errors with your business in your services. If a client claims against you, claiming you had an error in the services you provided them with, professional liability insurance will help you cover the defense or the lawsuit costs.  

Type #2: Business Income Insurance  

Sometimes, your business has to close down due to circumstances beyond your control. Perhaps your business has to close because someone broke in and stole some important equipment, or perhaps you experienced property damage and can't operate until you fix things. With business income insurance, your insurance will replace the income that your business usually brings in until you can get things up and running again.   

Type #3: Personal Property  

With a business, the items that are inside of your business are considered personal property. Things such as the equipment, inventory, tools, and furniture inside of your business are all considered business personal property and can be covered and protected by your insurance. If you can't afford to replace all of your business personal property at once if it was damaged, you will want to get business personal property insurance.   

Type #4: Commercial Umbrella Insurance  

It is smart to invest in a commercial umbrella insurance policy. A commercial umbrella insurance policy is an overreaching policy that comes into effect if the limits of any other liability policy you have in place are exceeded. That way, if a customer tries to sue you for an amount that exceeds your policy limits, and they win, your commercial umbrella insurance policy will cover the amount that exceeds your general liability policy. This type of coverage will protect you against any financially devastating lawsuits against your business.   

When it comes to your business, you will want to ensure that you have the proper protection in place. Talk to your insurance agent, and work to craft an insurance policy that provides you with all of the business insurance coverage you need.