5 Insurance Policies a Business Owner Should Consider: Are You Covered Should Things Go Awry?

Business owners require insurance policies for covering accidents, liabilities, and business locations. Each of the policies offers adequate coverage for preventing serious financial losses. When reviewing the policies, it is important to examine the terms and determine if the additional or supplemental policies are needed to maximize coverage. Business owners who review the 5 insurance policies a business owner should consider for the company determine if the business is covered if things go awry.

1. Commercial Property Insurance

Commercial property insurance provides coverage for the physical property and certain items, such as equipment and inventory that are stored inside the building. Some policies extend coverage to exterior fixtures that are connected directly to the commercial property, such as garages and storage buildings.

Typically, the policies provide financial assistance if the commercial property is damaged or destroyed due to natural disasters, fires, and criminal activities, such as a break-in or vandalism. Some commercial property owners must purchase additional policies if the property is situated in a flood zone. The additional policies are used if the property is damaged due to severe flooding.

The policy provides either a market value or true replacement value if the commercial property is a total loss. The business owner reviews the terms of the policy to determine what coverage amount they have. For owners who need further details about commercial property insurance going to Charles River Insurane could provide clear answers for the property owner.

2. Professional Liability Insurance

Professional liability insurance applies when the business owner provides specialty services that require a professional license. For example, a doctor that is accused of giving detrimental advice to anyone that leads to an injury is covered by the policy. In this example, the insurance policy provides protection against a financial loss if someone takes the doctor’s advice and detrimental circumstances arise. The policies are also helpful for companies that offer consultancy to consumers wanting to invest their money into a venture that isn’t guaranteed.

Doctors, lawyers, bankers, software developers, real estate agents, and contractors need the policy to protect against lawsuits for personal injury, instances of negligence, or property damage. It covers the cost of a legal defense, and the policy protects against serious financial losses. The coverage assists small businesses facing the potential shutdown of their business due to a lawsuit.

3. Worker’s Compensation Insurance

Worker’s compensation insurance is required by federal law for all business owners who hire more than one worker to work for the company. The policies provide better coverage for work-related injuries. The terms of the policy define whether or not the injured employee is eligible for benefits. The coverage includes payments for all medical requirements for the worker’s injuries and offers monetary benefits if the worker cannot return to work immediately. Typically, the monetary benefits range up to 90 percent of the worker’s wages.

The stipulations of the policy define conditions that apply to coverage. For example, the worker must pass a drug and alcohol test when medical treatment is provided. The human resources manager sends the injured worker to either an urgent care facility or an emergency room.

A claims adjuster reviews the circumstances of the accident and determines if the worker was at fault for any part of their accident. The accident must occur within the workplace or an off-site workspace defined by the company. Any worker that caused their own injuries won’t receive any compensation through the insurance policy. Additionally, workers who are eligible for light-duty work won’t receive any monetary benefits.

If a worker was eligible and the employer or insurer denies the claim, the injured worker has the option to file a lawsuit. In order to file, the worker must report the injury to their direct supervisor within 30 days of the accident. A full medical assessment is required, and the company owner ensures that all claims forms are processed appropriately.

4. General Liability Coverage

General liability coverage offers assistance if the company becomes the defendant in a lawsuit. General liability coverage offers payments for medical expenses and legal fees when a company is sued for personal injuries or property damage for which the company is liable. The legal claims often include product liabilities, premises liabilities, and property damage involving a rental property used by the business. General liability coverage doesn’t provide any coverage for claims that should have been filed through an auto insurance policy, worker’s compensation insurance, or professional liability coverage.

Business owners who need the policy have specific characteristics that could increase the probability of a liability. For instance, the company is publically accessible, customers come to the job site and interact with the business or its workers, workers handle the client’s property, or the business location is rented space. Companies that sell any products to the public, advertise the company or its products or use social media require general liability coverage in case of sudden and unexpected liabilities.

5. Commercial Vehicle Insurance

Commercial vehicle insurance is required whenever a company uses any type of vehicle for business purposes, such as deliveries or transporting customers. The policies cover property damage, personal injuries resulting from an auto accident involving a commercial driver. Any products or inventory transported in the vehicles are covered by the policy and replaced if the items are damaged in the accident. Any commercial workers who are involved in an accident and injured are covered under the policy according to the coverage type and limits.

Any business that uses commercial vehicles for business and personal use needs dual coverage to prevent liabilities and potential lawsuits. If an accident occurs, the commercial driver and the business isn’t covered if the driver was using the vehicle for personal purposes or if the business itself was closed. An additional auto insurance policy is required to cover any accidents that occur on personal time or for personal reasons.

Business owners research insurance policies to reduce potential risks and liabilities. The right insurance policies lessen the blow of a legal claim against the company. Businesses that purchase adequate coverage for all liabilities avoid serious financial losses and if things go awry.