If you are looking to cover damages and losses incurred while running your business, look no further and get a business insurance coverage.
In this article, you will learn the basics of business insurance, terms commonly used, types of business insurance as well as simple tips to help you compare quotes and save on your insurance premium.
What is business insurance?
Business insurance is an insurance policy that covers losses incurred during the normal course of business. Covers may include property damage, legal liability, employee-related risks, professional mistakes, accidents, etc.
Before purchasing any insurance policy, you will need to access your coverage needs, and others. Here are a few things to consider before purchasing business insurance.
- How much your assets worth: You should know the replacement values and potential liability cost of business-related assets before you can determine the type of coverage you need.
- How important those assets are to operation: know to extent to which your business operations can continue without those assets.
- How can those assets be lost: You should figure the circumstances or events that could lead to loss or damage of your assets.
The following are typically covered under a business interruption insurance policy:
- Profits. Profits that would have been earned (based on prior months’ financial statements).
- Fixed costs. Operating expenses and other costs still being incurred by the property (based on historical costs).
- Temporary location. Some policies cover the extra expenses for moving to, and operating from, a temporary location.
- Commission and training cost. Business Interruption (BI) policy essentially covers the cost of providing training to the operators of the machinery replaced by the insurer following the insured events.
- Extra expenses. Reimbursement for reasonable expenses (beyond the fixed costs) that allow the business to continue operation while the property is being repaired.
- Civil authority ingress / egress. Government-mandated closure of business premises that directly causes loss of revenue. Examples include forced business closures because of government-issued curfews or street closures related to a covered event.
This coverage extends until the end of the business interruption period determined by the insurance policy. Most insurance policies define this period as starting on the date of the covered peril and the damaged property is physically repaired and returned to operations under the same condition that existed prior to the disaster.
Types of Business Insurance
- General Liability Insurance
This policy covers business in case of claims or lawsuits that arise from injuries, accidents, or negligence. It also covers expenses incurred during the legal representation.
- Product Liability Insurance
This policy is available to customers that make, sell, and distribute products. It covers claims that arise from product defects which may cause injury or harm.
- Professional Liability Insurance
This policy is usually purchased by businesses that render professional services. It covers errors, negligence, and malpractice in the service rendered to customers
- Property Insurance
This policy is available to customers that run their business from standard commercial buildings. It covers damage or loss of property due to theft, fire, smoke, wind, vandalism, etc.
- Business Interruption Insurance
Also known as business income insurance, this is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
It differs from property insurance in that a property insurance policy only covers the physical damage to the business, while the additional coverage allotted by the business interruption policy covers the profits that would have been earned.
Business Insurance Companies
There are several business insurance companies in the united states. Below are just a few business insurance companies you can request quotes for your business:
- The Hartford
- The Hanover
- Liberty Mutual
- Farmers insurance
- State Far
Tips to Help You Save On Your Business Insurance Quotes
Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks, and each type has different quotes.
Here are some tips you can use to save on business insurance quotes:
- Inquiry about the details of your quotes beyond the price to detect possible hidden fees
- Compare different quotes you have receive before making your final decision
- Assess inclusions and exclusions of the policy by seeking provision that eliminates coverage for some type of risk
- Compare policy limits and deductibles of each policy and choose wisely
- Be sure to pick a flexible policy that can grow with your business
- Take your existing insurances policy into account
- Be sure you are not paying for duplicate cover plans
- Choose higher deductions as they save your money
- Always take loss protection measures in order to reduce their risk of property losses (damage/theft).
If you own a business, you can now use the above information as a guide to help you choose the type of business insurance that’s right for you, including coverage for your commercial or rideshare vehicle.
If you know other techniques to save on business insurance quotes, kindly comment below to share them with our readers.
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