What Does Business Insurance Cover?

General insurance for businesses covers most businesses by protecting against legal claims, property damage and injuries. If a suit or complaint were to be filed against a company, the liability coverage under a general policy would cover fees and costs associated with any lawsuit. Worker’s compensation is a form of coverage that is covered separately. When you go to shop for insurance for your business it is important to know what is covered as well as what is not covered.

What business insurance covers for a company in the event of property damage done during a storm or a fire and the like can avry. General business insurance usually also covers a company in case a competing business makes a claim against the type of advertising being done. If your company is accused of infringing on another company’s advertising campaign or if you are accused of putting down another company in your advertising, then this coverage would help your business cover any expenses associated with settling such a claim.

What Are Specific Types of Business Insurance?

If a company manufactures or produces a product that will be consumed by a customer, a company would probably want to have adequate product liability insurance in place. This would be a form of coverage that would be purchased in addition to the general coverage afforded in a business’s insurance policy. Likewise, you may also find that public liability insurance applies to your company if you deal with the general public frequenting your place of business.

In the event someone, a customer or a client, were to injure themselves or slip and fall in your store, for example, public liability insurance would cover expenses on your business’s behalf in that circumstance. If your company is a professional firm such as an accounting firm or an architectural firm, you would probably want to obtain professional liability insurance or errors and omissions insurance.

Errors and omissions insurance would protect any firm that operates in a capacity where professional advice is commonly given to clients and customers. In the event that a client suffers, or claims to have suffered, damage or loss as a result of your firm’s professional advice, the errors and omissions coverage would provide the means to fight such a claim.

What Is Not Covered by Business Insurance?

General business insurance obviously will cover the basic risks a company takes on in the ordinary course of operating. It will not cover everything. If your company has vehicles that are used for work they will need to be covered by a separate automobile insurance policy, for example. As mentioned previously, worker’s compensation insurance would also need to be covered by a separate policy.

When you start your search for business insurance, you will want to make that search an informed one. Know what your business’s risks are in general. This way you will have more of an idea of how much insurance you will want to obtain. Of course, depending upon the type of business that you operate your coverage will vary. The greater the risks your business undertakes day to day, the more coverage you will want.

Keep in mind too, that there are various laws that may affect the amount and kind of insurance your business needs to have in place. When you are in the process of searching for the best business insurance coverage for your company’s individual needs, you can consult with your broker to find out exactly what those required insurance amounts are. Remember, your business is as important to your local community as it is to you and your employees, so make your insurance purchase decision as carefully as you possibly can.

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