7 Types of Insurance Every Business Should Consider Having

Insurance is a valuable commodity in virtually every industry, incredibly as complex and wide-reaching as the modern business world. From automakers to food companies to construction firms, every business needs to have commercial insurance.

1. Commercial Property

Any business that utilizes real estate for any purpose should insure it against property damage and loss to its contents. Depending on the size of the structure or the time elapsed since construction took place, this type of policy may be underwritten by one company or several.

2. Commercial Umbrella

An umbrella policy is typically used for businesses that have been in operation for a long time or have been through several natural catastrophes. As with most commercial insurance policies, the cost of this policy is usually low. The most important aspect of this type of coverage is getting more coverage than you need; it could be possible to get more coverage than you need to be financially safe.

3. Cyber

Although many businesses are protected from hack attacks due to their lack of advanced technological equipment, it may still be possible for a hacker to obtain vital information and use it for their gain. A cyber can help you avoid such attacks by providing financial assistance if your information is used against you. Any computer containing sensitive information should be protected with a cyber policy designed to cover any breaches that may occur due to hacking.

4. Employee Benefits Liability

This type of policy is often used by companies with no other coverage besides their own, so it is obvious why this type of insurance would be beneficial. If an employee causes an accident resulting in a claim, the company has the right to use that claim as a defense in any lawsuit brought against it. Many employers go out of their way to ensure a good EBL policy because they know how important it is to have adequate coverage.

5. General Liability

It covers any judgments awarded to third parties caused by bodily injury, property damage, or wrongful death. It also protects against claims for bodily injury or property damage related to your business operations if a third party is accidentally injured while working at your company or performing a work-related function on your premises.

6. Product Liability

This coverage protects your company from liability for injuries or damages caused by defective products. It is an insurance policy that indemnifies the business from all claims against it when a product causes injury or damage to third parties.

7. Workers Comp

Employers commonly provide this coverage with between five or less than 50 employees. It can be helpful if a worker suffers an injury. At the same time, at work, it is also beneficial in the event a worker suffers an injury while performing their duties elsewhere.

It is important to understand that insurance coverage varies from company to company based on location, industry, and excess limits. No matter which type of insurance policy you choose for your business, the most important aspect is ensuring that the amount of coverage you have is adequate. It is common for companies to purchase more coverage than they need due to a lack of knowledge about their company’s insurance requirements.