Business Insurance Policies
What is Business Insurance?
Business insurance is a specific type of insurance designed for people who own and operate their own companies. Your policy protects you against lawsuits filed by people injured on your property, including employees and customers or clients. It also comes into play in liability and other types of legal cases. Anyone who runs a company or owns and leases commercial properties could benefit from this type of insurance.
The two most common types of policies are liability coverage and property coverage. Property policies cover any type of damage done to the building, including replacing broken windows caused by hail damage and repainting interior or exterior walls after vandalism occurs. Peril-specific policies often limit the types of damage it covers to those caused by nature, while all-risk policies cover all types of damage, including those caused by disgruntled workers or vandals.
Liability insurance can cover professional liability, product liability or be a general liability police. Product liability covers problems that rise because of the products your company creates, including injuries caused by human error and injuries caused by defective products. Professional liability protects you against lawsuits filed by others. This includes legal action taken against you because of the way you marketed your product or for the directions you included in the packaging that led to injuries or damage. General liability covers most forms of liability, but it often costs more. Depending on the state where your business operates, the state might require that you have at least one form of liability insurance.
Business insurance works in the same way that other types of insurance does. You choose the amount of coverage that you need, and the insurer will charge you a premium. Company owners typically make premium payments at least once every six months, and some companies charge a monthly payment. The insurer agrees to cover any costs you incur up to the amount specified by your policy. The more claims that you file against your policy, the more your premium increases. It's important that you talk to your insurer about the needs of your business before purchasing a policy.