You are reading this and would like to know about business insurance? Hey! That’s great! Insurance saves a lot of potential financial ruin, and not only that but there are also physical and psychological well-being for your employees, which then would increase their retention. Therefore, another good thing for the company, am I right? 

As per definition, insurance means “a contract in which an individual or entity pays an insurance company in exchange for a financial protection or reimbursement of losses resulting from a covered event”. But of course, there are different kinds of business insurance services, so in this blog, we’ll be tackling them for your further knowledge.

Business Owner’s Policy (BOP): This is the most popular choice with insurance packages because it bundles the required insurance into one convenient package. It covers two things: General liability and commercial property

  • General Liability: Its essence is protecting the business from third-party claims from property damage or injuries.
  • Commercial Property: Covers losses related to unexpected events like lawsuits, accidents, or natural disasters, among others.

Professional Liability Insurance (E&O): This focuses on taking care of companies that handles professionals- such as lawyers, psychologists, educators- from allegations of negligence, errors, or omissions in their work.

Workers’ Compensation Insurance: As mandated by law in many jurisdictions, it covers medical costs and lost wages for employees injured on the job. It is mandated by each state and the wage and medical benefits differ by state.

Commercial Auto Insurance: This insurance is valuable if your employees use company vehicles for official business. These vehicles used are to transport goods or paying passengers, it could be any type of vehicles that are named under the company- some of which are cars, delivery trucks, vans, SUVs.

Cyber Liability Insurance: Of course, we have data in the digital age and it has to be protected. With this insurance, it protects the business from damages caused by cyberattacks, data breaches, and other online threats.

Product Liability Insurance: This would be handful for companies that make, supply or sell products to members of the public. If there would be a threat or claims that is caused by your products due to manufacturing, this type of insurance would protect the company.

Directors and Officers (D&O) Liability Insurance: Specifically for directors and officers of the corporation. This is related to their decisions and actions while serving on the company’s board, which would prevent them from financial liability lawsuits.

Employment Practises Liability Insurance (EPLI): When there is discrimination, harassment, wrongful termination, bullying, and other employment issues, this insurance would cover those employees.

Each business has their own focus. Of course, you had an assessment on who you would like to market, what services you will offer, and how you will execute them. In each of those processes have their own risk, even if you have cleared it out and have action plans on how to resolve them, there are still unforeseen circumstances that could happen anytime. If worse comes to worse, it could lead to bankruptcy, and that is what we are trying to avoid in the first place because we want it to be successful. That’s why preventive measures are a must. Yes, insurance could be costly but if you think about it, it could be more expensive if you don’t have insurance to somehow save you if it happens.