What Types of Business Insurance Policies are Available?

There are many types and limits of insurance coverage available for businesses of all sizes undertaking all kinds of risks. There are some basic types of business insurance to be aware of. However, you do not want to simply start shopping for a policy thinking that as long as it covers a business it will protect your company perfectly.

What Are the Basic Types of Business Insurance?

Generally speaking, if you come across the term general liability business insurance or general commercial liability insurance they can be used interchangeably. The terms imply that they are general, or basic, coverage. This is exactly what they are. For business purposes, this basic coverage will protect your company in several ways.

General liability or commercial liability insurance for your business will cover your company in the event of bodily injury or harm caused to someone while on your business’s premises. This can include payments for medical bills that arise after such an incident. Also, your business premises are protected by way of general coverage for property damage in this basic policy.

Finally, what business insurance policies cover usually include claims of libel, slander or other types of complaints against your company that include advertising injury. This would mean that if a competitor contends that your advertising blatantly puts them down so as to lure customers your way, you could handle such a claim with the aid of your insurance coverage.

Of course, each policy written will be tailored to the individual business at hand. Even the basic types of business insurance policies will vary from one company to the next. However, general business or commercial liability coverage will be available to you no matter how large or small your company is.

Do I Need Specific Policies?

The answer is that it depends. For instance, if you are operating a small therapy firm or an advertising or business consulting firm, you offer advice to clients. Your clients depend upon that advice and pay you for it. If ever a claim were to arise that your client suffered damages as a result of taking your professional advice, you would look to your professional liability insurance policy to help you.

This type of coverage is also commonly called “errors and omissions” insurance. Errors and omissions insurance usually is opted for by professionals, as illustrated above. This is not to say that your company is not professional! But, if you are operating a law firm or an architectural firm, you need special coverage that helps protect you against the advice you provide to your clients. The same does not hold true if you are an at-home business making handcrafted goods that you sell to the general public.

What About My Home Based Business?

A lot of businesses do operated from home, including professional firms. You need to get specialized coverage for any liabilities you may face in the ordinary course of operating your home-based business. This is because your homeowner’s policy does not protect you against any claims a customer has about the goods or services you provide.

Remember, too, that even if you operate from your home, you are operating a business. Working at home does not necessarily protect you from all the risks other businesses face in the outside world. You will want to talk with your professional insurance broker for details on what types of insurance will adequately cover your specific business. Now that you have some general knowledge of what liability insurance policy to look into, you can do this and make an informed policy purchase.

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