What Types of Coverage Are Found in Commercial Insurance Policies?
If you run a business, you know you need to protect what you’ve built with commercial insurance. However, many business owners — and particularly those new to company ownership — don’t realize just how many types of commercial insurance are available to them. Here’s a look at some of your options.
Workers’ Compensation Insurance
Most types of employers are required to carry workers’ compensation insurance. This coverage may pay for medical treatment and partially replace lost wages if an employee gets hurt at work.
Even if you aren’t legally required to carry workers’ compensation insurance, it’s worth considering. When you compare the cost of insurance premiums (especially for a low-risk business with only a few employees) to that of a personal injury lawsuit, investing in a policy is the obvious choice.
General Liability Insurance
Along with workers’ compensation insurance, general liability insurance is among the most important types of coverage a business can have. It may pay for medical costs and other expenses if a non-employee is injured at your place of business. And if the case goes to court, your insurance may also pay your legal fees.
Liability insurance could also cover you if a competitor claims you committed “advertising injury.” This is when an ad slanders a competitor or uses copyrighted material. For example, you might need your general liability insurance if you create an ad that uses a competitor’s logo or claims that a certain competitor overcharges.
Cyber Insurance
If you store any kind of sensitive customer information online, cyber liability insurance may cover the costs you incur in the event of a data breach. If hackers get into your database, they may steal pieces of data like these:
Social Security numbers
Credit card numbers
Addresses
Phone numbers
Health records
If your company is the victim of a data breach, you might be legally required to notify your customers, which can sometimes be expensive. You also may face lawsuits and all the legal fees that come along with them. The right cyber insurance policy can limit the financial impact on your business.
Errors and Omissions (E&O) Insurance
General liability insurance protects you if someone gets injured on your property, but it doesn’t cover problems with your work. E&O insurance is essentially professional liability coverage, and it may help cover costs associated with errors in your work.
For example, imagine that you’re a contractor, and you make a mistake that causes thousands of dollars in damage. If you have E&O insurance, your insurance will pay for the damage. If you do not, you’ll be stuck covering the costs of any damage out of pocket.
How much E&O insurance you need depends on the kind of work you do and the size of your business. A commercial insurance agent can help you choose the right policy.
How Do You Know What Kinds of Commercial Insurance to Get?
Insuring your business is a critically important decision. However, if you’re like many business owners, you’re unsure which types you need (and don’t need). The good news is that you don’t have to make that determination alone. The right commercial insurance agency can get to know you and your business and help you create a policy.