Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters and lawsuits can cause your business to close if you're not protected with the right insurance. Commercial insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses, including coverage for property damage, legal liability, and employee-related risks.
BOE insurance covers the cost of running your business (based on actual expenses, including utility bills and employee salaries) if you become disabled and can no longer operate your business. Workers' compensation insurance, also known as workers' compensation or workers' compensation, covers medical costs and a portion of the lost wages of an employee who has suffered a work-related illness or injury. Crime insurance can protect your company from financial losses caused by criminal activities, such as computer and fund transfer fraud, employee dishonesty, counterfeiting and alteration, the loss of money and securities, and the theft of your customers' property. Alex Roje, partner at Lathrop GPM, said that every small business owner must evaluate their specific needs and responsibilities to develop the combination that best protects their business.
It's similar to key person insurance, which provides the beneficiary with financial assistance in the event of death. Homeowner policies don't cover home-based businesses, just like commercial property insurance covers businesses. Commercial line insurance helps keep the economy running smoothly by protecting companies from potential losses that they couldn't afford to cover on their own, allowing companies to operate when it would otherwise be too risky to do so. If you want general liability insurance and property coverage, you can combine them into an insurance policy for business owners, also known as a BOP.
Small businesses should seek cyber insurance to protect themselves from losses caused by cyber attacks such as ransomware, viruses and data breaches. A typical administrative liability insurance package includes coverage for liability for labor practices, fiduciary liability and liability D&O. While these policies can be expensive, they are essential to protect your business from disasters that may occur in your area. Administrative liability insurance is a combination of coverages used to protect private, public and non-profit companies from various board-level exposures.
However, if you operate a company-owned vehicle, your vehicle is specifically designed to work, or if you need higher coverage, you may need a commercial auto insurance policy. This insurance protects the assets of its directors and officers if they are personally sued for wrongful acts in the company's management (for example, California companies should consider earthquake insurance because of the high probability of an earthquake). Cyber insurance can include data breach insurance (which is good for helping small businesses recover) and cyber liability insurance (aimed at larger companies that need more coverage).