Understanding Insurance Policies

4 Business Insurance Coverages Businesses Typically Need

16 August 2016

Samantha Reynolds

If you own a business, you probably know that you need business insurance, but it can be difficult to determine how much. On top of this, there are all kinds of additional coverage you can add that will cost more, and it can be difficult to determine whether or not you should actually add these types of coverage. Here are four business insurance coverage that businesses typically need to have.

1. Liability: First off, you are going to need liability. All businesses should have liability coverage because it protects you financially if someone is hurt on your business property and decides to sue you for their medical expenses. Besides, liability may even be required of you if you are renting out your business space from a landlord or if you have suppliers who require this insurance. Whatever the case, you'll be glad you have it, especially if you add employment practice liability, which will protect you in the case that you are sued for wrongful termination or some other employment issue between you and an employee. 
2. Professional Liability: Professional liability is different from general liability. Professional liability is coverage to help cover the cost of defending your business, or the cost of paying any lawyers and other professionals you have hired to disprove a claim. You are probably going to need this because you are going to be too busy running your business to take time out to defend it in a legal situation. You will want a lawyer to do this for you, and you will want to ensure that the cost of doing so won't hurt your business.
3. Property Coverage: Property coverage is important for businesses because it protects you in the case of a fire, tornado, or other natural disaster that destroys your business property. This will include coverage that will help replace all furniture, expenses to move to a new location, and any business inventory you had on the property. 
4. Worker's Compensation: Finally, worker's compensation is definitely something you need to include if you have employees. You want to ensure that if your employee is hurt while on the job, you are covered. The worker's compensation will cover a hurt employee's medical expenses as well as income loss. Most states require this if you have employees, and many employees won't work for a business that does not have this. 

When you know these four basic coverage types most businesses have, you can have a better idea of what you need to look for in your business-insurance coverage and what to expect when it comes to paying to hold the insurance policy every year. Talk to a company such as Austin Insurance Agency for more information about these types of coverage. 

Share