Common Business Risks Covered by Insurance You Need to Know
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Contents
Introduction
It’s important that you protect your business interests, but it can be difficult to manage the risks of running a company. One way to help mitigate these risks is by purchasing the right type of insurance coverage. There are several common types of business insurance that many companies overlook, but they can be crucial to protecting your assets in case something happens.
Business Interruption Insurance
Business interruption insurance (often referred to as BII) is a type of property and casualty insurance that helps protect your business from the financial loss it may incur if it’s unable to operate due to events like fire, flood and other natural disasters. The coverage can also be used for manmade events such as terrorism or labor strikes.
Business interruption insurance covers the costs associated with starting up again after an event has caused damage or destruction in your workplace. It also provides funds needed for relocation if necessary, as well as payment for lost income during this time period–whether that be sales revenue or fees paid by customers who no longer want their services/products anymore because they’re damaged/destroyed by whatever cause affected your company’s operations in the first place (e.g., an earthquake).
Property Damage Coverage
Property damage coverage is a type of insurance that protects your business against damage to property owned by others. Coverage includes both physical damage to property and coverage for water and sewer backup. Property damage coverage is often included in a business owner’s policy (BOP), but it may also be purchased as an endorsement to the BOP or as part of another type of policy, such as an inland marine insurance policy.
Property owners are required by law to maintain adequate liability insurance on their buildings and other structures built on their land or within its boundaries if they want guests or visitors who enter these areas protected from harm caused by hazards inherent in those buildings or structures.[1] If someone were injured while visiting one of these properties due to some kind of defect related directly back towards its construction then this would be considered “property damage” under standard definitions used throughout most jurisdictions worldwide.[2]
General Liability Insurance
This is a broad category that covers you if someone sues you for damages or injuries. It also covers property damage and personal injury claims.
Business Auto Insurance
Business auto insurance covers cars, trucks, and other vehicles used for business. It can include coverage for bodily injury or property damage to others in an accident. Business auto insurance can also cover damage to your own vehicle and legal defense costs if you are sued for an accident.
Product Liability Insurance
Product liability insurance covers you if your product causes injury or death. It’s important to have this coverage because it protects you from lawsuits, which can cost thousands of dollars in legal fees and settlements.
If you sell products, like clothes or food, product liability is something that should be considered part of your general business insurance policy.
Some business risks are covered by insurance you need to know about.
- Business Interruption Insurance
- Property Damage Coverage
- General Liability Insurance (employers’ liability)
- Business Auto Insurance
- Product Liability Insurance
Conclusion
We hope that this article has helped you understand the various types of business risks that can be covered by insurance. We know it can be confusing to sift through all the options out there, but by knowing what coverage is available and how much it costs, you’ll have a better idea of what type of policy might work best for your company. If you have any questions about whether or not one type of coverage would work better than another in your situation, reach out to an agent at Insurance Marketplace today!
