Choosing Insurance For Your Business

What are the policy types?

There are different types of business insurance that provide different types of coverage. There’s coverage against damages to your business’s location (office, factory, etc.), vehicles, and equipment and inventory. There’s business insurance to protect against losses resulting from crimes, such as theft or even employee fraud. There are many types of business liability insurance, protecting your company in the event of a lawsuit. There is also business insurance to provide coverage for extended leaves of absence due to illness.

What are the general categories?

Business insurance can be divided into four broad categories:

• Business property insurance. Reimburses any insured party who has suffered a financial loss because property (land, buildings, personal property, etc.) has been damaged or destroyed.
• Business liability insurance. Delivers protection to pay for bodily injury or property damages when the insured is legally responsible.
• Business automobile insurance. Provides protection against damages caused by the vehicles used for business purposes. Similar to personal auto insurance, comprehensive coverage provides compensation for vehicle damages resulting from fire or theft; collision covers losses due to an accident; liability coverage protects you if you are sued for an accident involving a company vehicle.
• Business umbrella insurance. Extends coverage for losses above the limit of another policy or policies. An umbrella policy may also extend coverage for losses not normally covered in the other policy.

Outside of these four primary categories, other types of business insurance coverage include workers compensation insurance, business interruption insurance, group health insurance, group life insurance and disability insurance.