Types of Business Insurance

Business insurance is a way of protection against potential financial loss. It’s a form of commercial risk management, mostly utilized to mitigate the threat of an uncertain or contingent gain. Like other types of insurance, the coverage offered depends on the type of business you’re in, the level of risk you present to others, and the amount you are willing to pay for protection. In addition, there are some business insurance types that are more appropriate to certain industries than others.

Property Damage. If your company owns a large portion of real estate, like a warehouse or a factory, it may be required by law to get property damage and liability coverage. This covers damages to physical buildings and structures, such as equipment, supplies, and vehicles. It may also cover lawsuits that occur because of these damages. For example, if a lawsuit is filed over something like fire damaged equipment, a property damage insurance policy will help pay for repairs and replacement costs.

Professional Liability. The risks that your employees pose on your company could be mitigated with a liability insurance policy. Different policies have different limits as to what your employees can be compensated for, but having a policy that helps your employees receive medical attention and doesn’t limit them to working in areas deemed safe would be advisable.

General Liability. This covers legal claims that occur as a result of negligence or similar acts. It also covers property damage and bodily injury claims. These are generally the most affordable of the different types of insurance policies, and it helps protect businesses from financial loss due to lawsuits. Personal injury is another option for this type of insurance. Many personal injuries occur when people are working, so this kind of policy helps prevent loss due to personal injury.

Workplace and Vehicle Insurance. Some employers will require their employees to purchase workplace and vehicle insurance in order to legally protect themselves and their companies. If an employee is injured while at work, the company may be responsible for their medical expenses and lost wages if they are injured on the company’s property. Businesses need to protect themselves from liability lawsuits that stem from injury-related accidents on the job.

Structured Settlement Insurance. If you are sued because of injury or death, a structured settlement is often the best way to settle the dispute out of court. However, it can also protect small businesses from expensive lawsuits and compensations. It can help protect your assets and ensure that you do not become financially ruined due to lawsuit related events. Having insurance can also keep your employees from taking advantage of you or your company by filing false insurance claims.

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