Which Of These Eight Insurance Policies Fits Your Business?

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February 14, 2016
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Which Of These Eight Insurance Policies Fits Your Business?

Before a business hires its first employee, it already faces certain risks. If it is not well insured, a minor catastrophic event could send the business owner packing. However, there is https://www.mcdougallinsurance.com/belleville/commercial-business-insurance/ that business owners can take to prevent adverse effects of catastrophic incidents.

General liability insurance

Whether the business is home based on in a commercial building, general liability insurance is paramount. The policy provides defense from damages that you, your employees, or your products may cause.

Property insurance

The policy applies to anybody who owns any property. If you won a building, or you have equipment such as computers and printers in your business premise, then you can always take up this policy. The insurer provides defense in the event of fire, vandalism, smoke, theft, or any other sort of damage. You can also include a clause on business interruption that covers the loss of profits in case your business ceases to operate for a while.

Worker’s compensation

The policy covers employees if they are hurt during official working duties. The cover includes medical benefits as well as wage replacement to those injured while at work. If chances of injury during working hours are high, ensure you get this policy.


Commercial auto insurance

The insurance policy covers all the company’s vehicles. If you use vehicles to transport your employees or use cars to transport equipment, raw materials or finished goods, then this policy is crucial.


Professional liability insurance

Such a policy is also known as the Errors and Omission insurance. It protects any wrong professional decisions. For instance, if a doctor makes a wrong diagnosis, which leads to medical complications, the patient may launch a claim. In such an event, this policy comes in handy. Another example is if an accountant makes a mistake during the preparation of books of accounts, which in turn causes the client money, the policy will cover for the loss.

Data breach

If the business keeps important files for either their employees or their customers; then a violation of this information occurs, then this policy caters for all losses associated with the event. The insurer covers for all costs regardless of whether it is electronic data or data on paper files.


Directors/Officers insurance

If you are the director of your company, it is important to note that some actions you take may affect the business too. In such a case, it is vital to take up this policy. The insurance policy covers for all losses that result from the actions of directors/ officers; which affect the profitability of the business.

Business owner’s policy

Also known as BOP, the policy covers all the coverage a business owner may require. The scope of coverage depends on the specific needs of the firm. Usually, business owners prefer this cover because it is typically cheaper as compared to taking each policy separately.

A primary rule of any successful business includes choosing a suitable insurance policy. The decision should be governed by the needs of the firm and future projections. Now that you know the available choice, it will be easier to choose the best.