What To Look For When Purchasing Insurance For Your Business
Organizations rely upon business insurance to protect them from the risks and potential threats to their successful and continued operation. Below, we have listed and explain eight common types of insurance for your business.
A licensed, reputable broker like KMRD Partners can help you choose the right insurances for your business by determining which coverages meet your particular exposures and risk appetite. While some brokers specialize in insuring specific types of business, others will place policies specific to your business activities.
8 Basic Types of Insurance For Your Business
Property Insurance
Property insurance transfers risks to the physical location and the contents of a business from such events as fire, theft, break-in, flood and other severe weather events. A covered property includes those owned, rented or leased. Coverages can include cyber intrusions and injuries sustained while operating company equipment and often crime coverage. Coverages are usually grouped in one policy. A skilled broker will carefully read the terms and the conditions of the policy from beginning to end to make sure the optimum risks have been transferred.
Commercial Auto Insurance
Commercial auto insurance covers your business for loss or damage to vehicles used on company business, as well as damage to others caused by someone driving one of your company vehicles. Events occurring while a vehicle is used for business are not covered under a personal auto insurance policy, even if the vehicle is used for both business and personal purposes.
Liability Insurance
Liability insurance covers a business in the event someone sues it for bodily injury or property damage as a result of an occurrence. . Typical events include slips and falls, failure to perform professional duties and errors and omissions resulting in a client financial loss. Liability insurance does not protect against liability resulting from crimes or intentional torts committed by the insured.
Also see: How to Choose the Best General Liability Insurance for Small Business
Product Liability Insurance
Product liability insurance for your business covers bodily injury or property damage caused by a product designed, supplied and/or manufactured by a business.
Business Interruption Insurance
According to Business Insider, a small business probably won’t survive if it does not resume operations within 10 days following a natural disaster. Without the right insurance for your business and access to funds to get business operations back to normal, there is little hope of survival. Business interruption insurance can prevent this from happening by making up for lost cash flow and profits incurred because of an event interrupting normal business operations.
Also see: Understanding Your Business Interruption Insurance
Health Insurance
Health insurance provides health coverage for management and employees.
Key Person Insurance
Key Person Insurance compensates a business for financial losses arising from the death or extended incapacity of a key member of the business team. A key person does not have to be a company executive, but any employee whose knowledge, work or overall contribution has been identified as being uniquely valuable to the business.
Workers’ Compensation Insurance
All 50 states require employers to participate in workers’ compensation programs to cover the financial needs of employees who are injured while working on the job.
KMRD is a strategic partner and outsourced risk manager ready to help your company transfer risk to insurance products. Our team has the proven industry experience to understand specific challenges and provide objective advice. We help manage risk through insurance and risk programs backed by our disciplined approach, proven processes, dedicated service team, and our collaborative risk management portal.
Contact us below to review your organization’s business insurance needs with a KMRD insurance expert.
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Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from a KMRD risk professional before taking any action.
