The U.S. insurance industry’s net premiums totaled a whopping $1.22 trillion in the year 2018. The sector had about 5,965 registered insurance companies during the same year. Insurance coverage cushions your business against property damage and liability claims.
Paying out of your pocket for legal claims can be overwhelming. Whether yours is a startup or a fully-fledged entity, it’s necessary to ensure you have the right insurance coverage plans.
Unfortunately, most businesses know very little about insurance coverage. Does your company have the right insurance coverage plans against liability?
In this article, we delve deeper into the different types of business insurance.
1. Inland Marine Insurance
Does your company store property away from the business premise often? Is transporting goods an everyday activity within the business? If yes, then you need to consider inland marine insurance.
Inland marine insurance indemnifies your business against losses or damages when outbound. Such injuries include cases of accidents while on transit over land.
The policy generally covers your goods during shipment. The inland marine insurance also covers all your goods stored in a third party warehouse.
Most business owners assume that inland marine covers businesses that transport goods over water. However, this assumption couldn’t be any further from the truth. Inland marine insurance ensures that your goods on transit have indemnity against damages.
Is your business yet to apply for inland marine insurance? Well, it’s time to consider a coverage plan that suits your needs. You can access comprehensive information on inland marine insurance here and learn everything there’s to know.
2. Commercial Property Insurance Coverage
Commercial property insurance is a kind of business insurance that covers your business in case of property damage. Part of the essentials in business includes machinery. However, such equipment may be susceptible to instances of accidents while within the business premise.
Property damage can cause a significant financial burden on your business. Damages to critical property such as computers may cause a sudden halt to vital operations in the company.
Have you been wondering what insurance coverage you need for your commercial property? A commercial property insurance plan is one of the most important coverages you should consider. This plan covers buildings, equipment, and inventory within your business premise.
You might need to prepare a list of all the properties within your premise when applying for insurance. Your insurance firm then undertakes a valuation of the property. The main objective of insurance coverage is to ensure that your business returns to the initial financial situation it was before the damages.
You might need to choose between the actual cash value (ACV) and the replacement cost (RC) when paying for this coverage. The idea is to ensure that your business can resume back to normal operations following such unprecedented damages. However, flooding and earthquakes aren’t part of this business insurance plan.
3. General Liability
Risks are an inevitable aspect of any business. Bodily injury claims and property damages may often cause delays in your business’ ability to deliver. That’s why, as a business, you need to consider general business insurance.
The number of work-related amputations recorded in the year 2018 in the United States stood at more than 3,580 cases. A majority of these work-related accidents resulted in lengthy and costly legal processes.
Is your business ready for the tedious compensation process in case of bodily injuries? It would help to consider general liability coverage for your business.
The general liability plan ensures that your business has full coverage in case of accidental or criminal damages. It also covers employee injuries, auto insurance, or instances of professional negligence.
The general liability coverage is also highly advisable in case you have clients who frequent your business premise. This insurance for a business plan is highly necessary for any business immediately after commencing operations.
4. Commercial Auto Insurance
Vehicles play a vital enabling role in any trade. It would help if you had cars to ferry goods and employees from one location to the next.
Your commercial vehicles may be prone to accidents that may cause physical damages to property or to other cars. You may also have to deal with medical costs in case of bodily injury.
As such, commercial auto insurance is among the business insurance plans your company should consider. The plan covers situations that expose vehicles to any form of damages. However, this kind of insurance coverage does not include personal use.
Your business may have multiple vehicles covered by the same commercial auto insurance policy. Nevertheless, you may choose collision, liability, or comprehensive insurance plan depending on your business needs.
5. Professional Liability
Is your business in the service sector? Then professional liability is one of the insurance for your business plans you can’t afford to ignore.
This insurance coverage covers any form of negligence claims on your employees within the business initiated by your clients.
Most professionals in these at-risk fields require this kind of insurance coverage. The plan cushions your business in case of negligence claims. When starting a practice such as in the medical or legal professions, this form of insurance liability can come in handy.
Professional liability coverage does not encourage slackness in the workplace. Nonetheless, errors are inevitable. This insurance coverage ensures that your employees have indemnity in case of professional malpractice.
Consider These Insurance Coverage Options a Must-Have
Business insurance coverage is vital for any company given that legal liabilities are inevitable in the course of operations. However, most firms aren’t aware of the five insurance coverage plans that are vital to business survival.
Are you considering business insurance options for your company? Inland marine insurance and each of these other four coverage plans are a must-have for your company.
Did you find this article useful? You can explore more content in a wide range of interest areas including business, tech, lifestyle, health, and travel on our five Best Things blog.