The Best Policy: 5 Types of Business Insurance You Need to Know About

We get it. You don’t want to think about insurance. Nobody does.

It makes sense: You purchase insurance for when the worst-case scenario materializes itself. But no one wants to think about the worst-case scenario becoming a reality in their business, so they often put off the insurance question until it’s too late.

It’s crucial that you take the time and effort now before the risks are realized so that you can protect yourself if such an unfortunate situation does ever come about. 

To help you on that journey, we’ve written this article on the types of business insurance that your organization should have.

1. Commercial Property

Does your business own a lot of real estate property? How about heavy machinery? Do employees get personal cars that are owned by the organization?

If so, then it sounds like you’ve got a lot of property that needs to be covered by insurance. When an accident happens and you lose a lot of property value, you’ll be covered by a policy that’s an umbrella over the entirety of your accumulated property.

2. Business Income

There are many situations in which your business may have to stop operating and will thus suffer a loss of income.

For instance, consider the COVID-19 pandemic. Many restaurants and entertainment businesses had to shut down operations during economic lockdowns. Without a business income insurance policy, they would have had no revenue during that shutdown period.

But when you have business income insurance, a certain percentage of your revenues are replaced, giving you the income you need to weather a troubling time.

3. Liability

Liability insurance exists to save your butt when your business commits some kind of egregious violation that in turn results in expenses for your customer. Take, for instance, a situation wherein at a construction company, one of your employees accidentally commits a mistake that results in a devaluation of the customer’s property.

Here, QuoteRadar can help you in finding the right liability insurance cover according to your needs.

This is where liability insurance will pay back that customer for the property devaluation that was caused by a representative of your organization.

4. Workers’ Compensation

Workers’ compensation insurance is mandatory in many states, especially for businesses that are subject to OSHA regulations (like construction and manufacturing enterprises).

Workers’ compensation insurance will pay your employees a percentage of their salary and/or any medical benefits if they get injured on the job and can’t come to work for a while.

5. Captive Insurance

Last but not least, a captive insurance company is a company that’s created specifically to assume the risks of one business. The benefit of this captive insurance company is that the premiums paid for insurance go directly towards policy coverage instead of towards overheads or profits.

Which of These Types of Business Insurance Is Right for You?

There you have it. With this guide to the different types of business insurance policies out there, you should now have a much better understanding of what policies you need in place to protect your organization.

For more business advice, check out the rest of the website!