Business insurance is a coverage that is specifically designed to protect businesses from everyday operational risks. These risks include burglaries, property damage, and lawsuits by customers or employees against the company.
Various factors determine what type of business insurance you should acquire for your business that you should be aware of. In this blog, we will discuss these aspects of business insurance and what it covers.
Purpose of Business Insurance
Just as discussed above, business insurance protects your company from the various everyday risks that can negatively affect your business. Your business’ financial assets, physical and intellectual property are protected from the following risks:
- Lawsuits
- Property damage
- Theft
- Vandalism
- Loss of income
- Employee injuries and illnesses
There are different types of business insurance to help your business which include:
- Commercial liability
- Commercial property
- Commercial auto
- Worker’s compensation
How Does Business Insurance Work?
Business owners should research and assess their risks because they can be personally liable for losses. Business insurance shields business owners from potential losses due to unforeseen circumstances that they couldn’t afford to pay without their insurance.
Thanks to this, firms are able to operate when it might be too dangerous for them to run their business.
What Does Business Insurance Cover?
For starters, business insurance covers risks associated with:
Clients and customers: Several business insurance policies help manage risks associated with clients and members of the public. Remember to consider various scenarios when reviewing the insurance options that are the best for you.
Employees: Employees and managers are key in helping your business grow, but they also come with risks through the daily operations. You can be liable for any workplace injuries and violating work rights. Here is where business insurance comes in and covers you.
Property: In the case of an accident, like a fire, for example, business insurance is able to cover reparation and replacement costs of your property. With insurance, remember you are also protected against burglary and theft.
Motor Vehicles: Business owners frequently lack clarity about the insurance they require for their cars. Many believe they may use their personal vehicle for work because it is insured, but if you or an employee are involved in an accident, that could prove to be an expensive error. That is why it is smart to carry additional coverage if you drive for work.
What Doesn’t Business Insurance Cover?
Acquiring business insurance is vital for even small business owners. However, it does not provide all the protection you need. There will be certain circumstances in which you must request insurance endorsements for your policies.
Endorsements will allow you to customize your policy to fit your needs appropriately or budget without needing a new policy.
Situations where insurance endorsement is needed include:
- Protection for someone not in the insurance policy.
- Claims performed out of the policy coverage dates.
- Physical damage to electronic devices.
Work with Pronto Insurance
If you are a small business owner, business insurance is a must. In the case of an accident, the type of insurance you choose will cover the costs of repairing and replacing any business property damage.
Pronto Insurance is committed to protecting what is most important to you and offers multi-policy discounts and tailor-made coverages to meet your needs. Contact us now to get a quote from our expert advisors.
