There are many insurance options for business owners. A policy for business owners helps a company to stay protected, against the different risks to which it may be exposed during its normal operations. Sometimes having so many options when choosing commercial insurance can be very overwhelming.
Companies need to have all the protection that their owner can give them, especially if it has cost a lot of sacrifices to be able to carry it out. This includes going beyond mandatory workers’ compensation and general responsibilities to feel safe in all scenarios, so avoid skimping on optional policies.
In general, companies usually start with an insurance policy for small businesses which usually combines three types of coverage, which are really essential.
• Commercial liability insurance
• Commercial property insurance
• Business income insurance
Insurers are aware that not all businesses are the same and that is why they usually prepare coverage that meets the particular needs of each type of company.
What is the general commercial liability policy?
General Commercial Liability (GLC) is a policy for business owners that can provide companies with insurance for personal injury, bodily injury, and property damage that occurs at the company’s operations, facilities, or by its products.
General business liability is considered comprehensive business insurance, but it does not cover all the risks that a business is exposed to. There are 2 types of general commercial liability policies:
• A claim policy, which is one that covers claims that occurred in any event regardless of the date.
• An event policy, in which the event must occur within a specified period of time.
A company can add other acquired companies or individuals to its commercial liability insurance policy as a kind of additional insured. General commercial liability insurance usually has different levels of coverage.
The general commercial liability policy usually includes coverage of the premises facilities, which protects the company from claims that may arise at its physical location during normal business operations.
It may also include coverage for bodily injury and property damage resulting from a finished product or service performed elsewhere. There are also excess coverage, which is additional coverage, which can be purchased to cover claims that exceed the limits of the general commercial liability policy.
Commercial property policy
The commercial property policy is essential for any company, regardless of whether you are leased, have your own premises or are working from home. It is one of the main policies that a business owner should have.
The commercial property policy protects the tangible assets of a company against any type of disaster, which falls within the following categories:
• Fires
• robberies
• vandalism.
• Explosions
• broken pipes
• storms
Earthquakes and floods are generally not covered by a commercial property policy. There are some exceptions, where some insurers add these risks to the policy. This type of insurance generally covers everything inside and outside the company:
• Computers
• Important documents
• Inventory
• Fences, patios, and gardens
• Exterior signs
• Furniture and equipment
• Mischief
What is the business income policy?
When you cannot properly manage your business, due to damages caused to the company by having to cover income losses due to temporary closure or other loss that has to be covered, the commercial income policy allows you to cover the loss of income, when it should close the business unexpectedly.
Business income insurance coverage applies to losses incurred in the period of time necessary to repair or replace damaged property or equipment. Your coverage can be extended to apply to losses incurred after repairs have been completed for a specified number of days.
Generally, business income that is covered by the business income policy is classified as taxable income, which includes any income that results from
Small Business Owner Insurance
Regardless of the size of the company, the business activity, or the industry, companies always face risk situations that can lead to economic imbalances. Even if The threats that each company can face are different, they can damage the continuity of their business operations.
Small business owner insurance, sometimes called corporate insurance, helps protect a business’s income, property, and assets. According to the Insurance Information Institute, business owners insurance (BOP) is the most common policy for small businesses.
Business owner insurance generally includes three basic types of coverage to help protect businesses: corporate property insurance, general liability insurance, and business interruption insurance.
If you are a small business owner, you can also purchase other insurance to customize the policy for your specific operations and needs. When it comes to small businesses, there are different types of insurance for small business owners, which can protect them from adverse situations that may harm them.
Next, I will show you different types of policies that exist for small businesses and the benefits they provide in the face of the risks that they may face:
• General commercial liability policies
This is a business owner policy that everyone should have. It is a policy that provides coverage against bodily injury, damage to the property of third parties, whether for the owner, his employees, or products.
• Commercial property policy
When you have a commercial property or are the owner of the building where your company is located, as well as all its inventory, it is appropriate to acquire a commercial property policy. This policy can protect you in case of:
o Vandalism
o Fires
o Theft
o Explosions
o Etc.
• Workers’ compensation policy
The workers’ compensation policy provides work injury insurance for employees who have been injured on the job. This type of policy provides wage replacement and medical benefits for people injured on the job.
Employees give up the right to sue their employers in response to the incident, in exchange for receiving these benefits. As a business owner, having a workers’ compensation policy is very important because it can protect you and your business from legal disputes.
Not all laws are the same in all states, as they can vary, but a worker’s compensation policy is needed in all states when you have employees.
These benefits can help:
o Pay medical expenses
o Make up the majority of lost wages if you must take time off from work to recover
o Cover funeral expenses if the worker loses his life due to an injury or illness that occurs or is related to work.
o Pay for rehabilitation if you need it, such as physical therapy
Policies for additional business owners
Generally, business owners can add additional coverages, which can be added to the general policy for business owners. Some of those that can be added are:
• Commercial automobile policy
The commercial automobile policy provides protection for all company-owned automobiles:
o Vehicles that transport employees
o Transportation of products or equipment
Business cars, SUVs, vans, and trucks are insured against collisions and damage. If the company does not have its own vehicles, but if it has employees who drive their own vehicles in business-related activities, it must be insured for automobiles that are not owned by the company but are servicing it.
This is a way to protect the company when the owner of the vehicle does not have adequate coverage.
• Professional liability policy
This type of policy is also called an errors and omissions policy. This policy provides relief and compensation for providing inadequate professional services. The general liability policy does not provide this protection, so it is important to understand the difference between the two.
The professional liability policy is applicable to any professional company, including notaries, consultants, real estate agents, attorneys, insurance agents, hair salons, technology providers, and accountants, to name just a few.
You should always speak with the insurance agent and ask about the specific business insurance needs that the company needs so that in this way it is easier to customize your business policy with coverages that can work for it.
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