Business Insurance: What kind and how much do you need?

January 17, 2024

Business insurance is a type of insurance that helps protect businesses from financial losses. There are many different types of business insurance policies available, each designed to protect against specific risks or exposures that businesses may face.

Some common types of business insurance include:

Property insurance: This type of insurance covers the physical assets of a business, such as buildings, equipment, and inventory, against damage or loss due to events like fires, storms, and theft. You may wonder if you need this if you are just renting a space, the answer is YES!  While your landlord will carry a property policy on the building itself, it will likely not cover your assets or any special build out you may have done in the space.

Liability insurance: This type of insurance covers a business against claims of injury or damage caused by the business's products or services or negligence. It may also cover legal defense costs and any settlements or judgments that may result from such claims. As a tenant, you will need to understand your lease requirements when purchasing this insurance most landlords will require a minimum amount of coverage.

Workers' compensation insurance: This type of insurance provides financial assistance to employees who are injured on the job. It covers medical expenses, lost wages, and other benefits for employees who are unable to workdue to a work-related injury or illness. The cost of this insurance varies greatly depending on the type of work and employee performs and your companies history of injuries and claims.

Business interruption insurance: This type of insurance helps a business recover from losses resulting from a covered event that interrupts the normal operation of the business. This may include loss of income, extra expenses incurred due to the interruption, and other related costs. Landlords carry this type of insurance to replace lost rent during a displacement from an event.

Professional liability insurance: This type of insurance, also known as errors and omissions insurance, covers a business against claims of professional negligence or mistakes. It is often used by professionals such as lawyers, accountants, and consultants. It is important to understand exactly what your policy covers.

Cyber liability insurance: This type of insurance covers a business against losses resulting from a data breach or cyber attack. It may cover costs associated with recovering from the attack, as well as any legal fees or settlements that may result from a breach.

Overall, the purpose of business insurance is to protect a company's financial interests and help it recover from unexpected losses or liabilities. It is an important consideration for any business, as it can provide peace of mind and financial security in the face of unexpected events.

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