Owning a business can be overwhelming, but having the proper insurance to protect your assets may help put your mind at ease. Business insurance, also known as commercial insurance, can help ensure that you, your business and your employees are financially protected from the unexpected.
What Business Insurance Do I Need?
Most businesses need the following four types of coverage:
- Property insurance can help compensate a business if its property is damaged due to a covered incident. This may include the business’s physical building or structure, furniture, inventory, raw materials, machinery, computers and other items critical to normal operations.
- Liability insurance can help pay for losses and/or medical bills if the business causes property damage or bodily harm to a third party.
- Business auto insurance can help cover costs for bodily damage or property damage resulting from an accident involving a company-owned vehicle.
- Workers’ compensation insurance can help provide replacement income and medical benefits to employees injured or ill due to a work-related incident.
Some additional coverage options you may want to consider include the following:
- Data breach insurance can help a business respond to a data breach or other covered cyber incident.
- Commercial umbrella insurance can help extend the coverage limits for some of your liability policies.
- Commercial auto insurance can help protect the business and its employees when driving a company-owned vehicle.
Why Business Insurance Is Important
Business insurance is vital because it helps provide financial protection from potential losses that could occur through business operations. When a business owner invests in insurance coverage, their insurance provider may help cover the costs of covered losses up to the limit of their policy. Without insurance, the business would have to pay for costly incidents out of pocket.
How Does Business Insurance Work?
Business insurance is designed to help relieve your financial burden when unexpected incidents occur. If an incident occurs that you think should be covered, you will file a claim explaining what happened and what was lost or damaged. Then, if your insurer agrees it is a covered incident, they will issue a payment to help you recover your losses. If you’re being sued, your insurance provider may handle your legal representation.
- A business insurance policy will generally include the following components:
- A premium
- A deductible
- Policy limits
- Endorsements and additional coverages
How Much Coverage Do I Need?
To help determine how much business insurance you need, contact the professionals at Hathaway Agency. We can help determine which policies and premiums are best for your situation.