What Type of Insurance Do You Need to Run a Business?

Risk management and loss control are integral parts of operating a successful business. Regardless of your organization’s commitment to safety or the experience levels of employees, certain incidents may be impossible to avoid. With this in mind, you should ensure that your company has access to the funds and resources needed to manage and recover from difficult times. Fortunately, an adequate business insurance portfolio can provide versatile and robust financial security.

What Coverages Should Your Business Have?

While you may be well aware of the importance of business insurance, understanding your exact coverage needs requires a comprehensive analysis of your unique circumstances, including risk levels and relevant perils. The ideal composition of your business’s insurance package may vary significantly from similar organizations, but the protections offered by the following types of coverage may transcend industry lines:

• General liability insurance—This coverage can help your business manage the financial implications of being responsible for third-party losses, such as those arising from bodily injuries, property damage, personal injuries and reputational harm. In response to these incidents, your policy may help pay for affected parties’ losses, as well as your legal expenses.
• Commercial property insurance—Also known as business property insurance, these policies can provide crucial financial protection for your tangible assets, including structures, equipment, electronics, furniture and inventory. Most standard policies include coverage for losses arising from fires, theft, burglary and vandalism, while certain natural disasters, such as hurricanes, earthquakes and floods, may require endorsements.
• Business interruption insurance—This coverage, which may often be purchased as an endorsement of commercial property insurance, can help your organization manage financial losses and expenses following disruptions or delays of normal operations. For example, if you must temporarily vacate your business premises, your insurance can help pay for reduced revenue and rent, and maintain employee wages.
• Workers’ compensation insurance—Legally required for most employers, this type of coverage can render financial aid in response to employees’ on-the-job injuries and illnesses. These funds may help cover affected employees’ medical expenses, lost wages and disability benefits, as well as your business’s legal fees should a lawsuit arise from the incident.

Additional Types of Insurance to Consider

While the aforementioned quartet of coverages is typically valuable for almost all businesses, your unique circumstances, including the industry in which you operate and the details of your operations, may make additional policies necessary. Work with a qualified insurance professional to assess if you may need the following:

• Commercial auto insurance
• Errors and omissions insurance
• Cyber liability insurance
• Employment practices liability insurance
• Commercial umbrella insurance

Get the Right Coverage

At Ackerson Insurance, our dedicated team is fully equipped with the knowledge and resources to help your business secure ideal coverage. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.