Business Insurance

Business Insurance

Business insurance is insurance coverage for businesses. Most people don’t realize it, but a business needs to be insured the same as a home or an automobile. The coverage protects a business from a covered operational loss that may be suffered while doing business. There are different types of risks a business might experience.

Business insurance usually includes liability, owners and presidents, product liability and employees.

Liability provides support for legal defense and personal or property damages up to policy limits. This coverage is extended only if you or any of your employees causes bodily injury or property damage to a third party.

Key person coverage is when life and or disability policies are purchased on behalf of the company to protect against death or disability of crucial employees. This is usually for people whose absence would severely impact the business – such as its owner. This coverage helps the company survive adverse consequences of death or disability of a key employee. It’s often used to pay company expenditures until a suitable replacement for the employee is found.

Product liability is for businesses that make products. If your business involves manufacturing, then product liability protects you against claims for personal injury or property damage caused by the design, manufacturing, supply, distribution or sale of an allegedly defective product. This coverage pays for legal defense and any personal injuries or property damage up to the limits of your policy.

Employment practices coverage is for any allegedly unlawful employment claims from a potential or actual employee. This is for when a company is sued for wrongful employment practices, including discrimination, harassment or unlawful termination.

When you start a business, business insurance is a must. This is especially true if you’re hiring employees or selling a product.