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Different businesses require different types of insurance policies

By July 22, 2019 No Comments

Different businesses require different types of insurance policies. Depending on the business and the coverage that is needed, the cost can vary greatly. Some insurance policies can be one thousand dollars, while others can be one million. While your agent can help you determine what coverage is needed, we can help you when it comes to paying your policy. We understand that it’s not in the best interest of every business to pay insurance premiums up front, so that is where we come into play. We are here to finance your policy needs.

Commercial Property Insurance is a policy that every business needs. This type of policy protects the building of your business, such as exterior fixtures, fences, signage, etc. It also covers your building contents. It protects the business’s physical assets from storms, fires, theft, explosions, and vandalism. There are a lot of considerations that are taken into effect to determine the cost of commercial property insurance. It largely depends on what assets your business has. There are some risks that need to be factored into that including location, construction of building, occupancy, and fire and theft protection. 

Commercial General Liability Insurance will protect your business from a financial loss for property damage or personal injuries that were caused by your services, your employees or any business operations. This insurance policy will cover the costs of a legal defense team and will pay on your behalf for the damages if you are found liable. There are three main types of coverage within this policy. There is bodily injury and property damage. There is personal and advertising injury. And there is Medical Payments. 

Commercial Auto Insurance is needed when there are cars, trucks or vans that are used for your business. This type of policy is for physical damage and liability coverage for amounts, situations and usage that is typically not covered by a personal auto policy. Commercial auto policies do have similarities with personal auto policies. It is important to know the difference, however, to make sure that you have the correct coverage. A commercial auto policy covers bodily injury liability coverage, property damage liability coverage, combined single limits, medical payments, uninsured motorist coverage, comprehensive physical damage coverage and collision coverage.

Workers Compensation is an insurance policy that covers medical expenses and a portion of lost wages for an employee who may have become injured or ill on the job. It also will cover employee rehabilitation and death benefits. Each state will have its own set of laws that employers must follow, so they will obviously vary from state to state. 

Commercial umbrella insurance is a policy that gives you extra protection beyond your other coverages. It will complement your other liability coverages and will take over when your limits have been reached. It isn’t a stand alone insurance, it works in conjunction with your general liability policy. It covers medical expenses, attorney fees and other damages that your company may face from a lawsuit. 

Cyber Liability Coverage is an insurance that will cover financial loss that results from data breach and other cyber events. This type of policy covers a first party and third party coverage. The first party coverage applies to any losses that are sustained by your company directly. First party coverages are usually subject to a deductible. They cover loss or damage to electronic data, loss of income or extra expenses, cyber extortion losses, notification costs, and damage to your reputation. Third party coverage is when claims are made against your company by people who have been injured as a result of your actions or failure to act. Some third party coverage may be subject to retention. These coverages include network security liability, network privacy liability, electronic media liability and errors and omissions liabilities.

Directors and Officers Insurance (D&O) protects the personal assets of corporate directors and officers and their spouses. This is in case they are ever personally sued by an employee, vendor, competitor, investor, customer or any other party for alleged or actual wrongful acts in managing a company. This insurance covers legal fees, settlements and any other costs. 

Employment Practices Liability Insurance (EPLI) is an insurance that will cover any wrongful acts that arise from the employment process. These types of claims include wrongful termination, discrimination, sexual harassment, and retaliation. It also covers defamation, invasion of privacy, failure to promote, deprivation of a career opportunity and negligent evaluation. This policy will cover directors and officers, management personnel and employees. 

Errors and Omissions Insurance (E&O) is an insurance that protects companies, their workers and other professionals against claims of inadequate work or negligent actions. It will cover court costs and settlements up to the amount stated in the insurance contract. This type of coverage is generally needed by professionals that give advice or service.

A Liquor Liability policy is needed if your business sells or serves liquor. It will help cover any legal costs, third party bodily injuries, third party property damages and any claims such as assault or battery that an intoxicated person may incur. 

Inland Marine Insurance is a marine insurance that will cover a wide range of specialized property. It covers moveable property and other specialized items that a standard property insurance policy can’t cover. It can include such items as cameras, musical instruments and catering equipment. It covers items that move from location to location. This makes the items more prone to loss, damage and theft. It covers property in transit, property in your temporary care, property that stays in a fixed but movable location, property that moves around, property that aids in the transfer of information and unique or valuable property. 

Cargo Insurance gives you coverage against all risks of physical loss or damage to freight during the shipment from an external cause that may happen during shipping. It covers transits that are carried out in water, air, road, rail, registered post parcel and courier.

As you can see, there are many different types of insurance policies that businesses are required and benefit from having. We are educated in all of these policies and will be able to handle your financing needs. Make sure that your business is protected and that it has the coverage that it needs.


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