Five Types Of Business Insurance

Business insurance is supposed to provide a degree of financial protection against unforeseen circumstances and accidents, and allow your company to continue conducting business without fear of bankruptcy or complications. However, different types of business insurance protect your business against different types of risk; understanding the differences between some of the most common and important policies can help you figure out which types of business insurance plans are right for your needs.

Worker's Compensation Insurance

Arguably one of the most common and necessary business insurance policies is worker's compensation insurance. This covers any payments that are given out based on injuries that your employees experience while on the job, and is legally required in some states and jurisdictions.

Liability and Property Insurance

Liability and property insurance, sometimes referred to as business owner's insurance, is a type of insurance policy that covers any bills or costs that come up because of an injury that a client experiences at your place of business, or any damage to your property--like theft of expensive tools, damage to equipment, and so on. Different types of policies will insure against different types of damage (weather damage, theft, vandalism, and the list goes on), so be sure to thoroughly examine each plan to determine the level of coverage offered.

Vehicle Insurance

An essential policy if you have a business vehicle that is necessary for the work that you do (or even for general transportation) is commercial vehicle insurance. While relatively similar to personal vehicle insurance policies in that they cover injuries and property damage that occur during a collision, a distinct commercial vehicle insurance policy is needed, as personal policies will not cover anything that results from a collision involving a work vehicle.

Key Man Insurance

Increasingly called key employee or key person insurance, this type of insurance plan is only necessary if there is a single individual in your business who is essential to the day to day operation of the business--like a CEO or CFO, or a specialized engineer who is the only one who knows how to operate equipment or a specific system. This insurance will pay out large amounts of money if that individual is harmed or dies, allowing you to recruit a replacement.

Errors and Omissions

Finally, if your business provides services to your clients, you may want to consider purchasing an errors and omissions insurance plan. This type of insurance protects you from being held liable for financial or another type of loss that a client experiences as a result of your advice. Medical malpractice insurance, for example, is a type of errors and omissions insurance that is designed to protect doctors from lawsuits.

if you're looking into insurances for your business, contact a local insurance company likeWelsh Insurance Agency Inc. for more information.

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