Types of Insurance Plans Your Business Needs

There are many risks associated with running a business, including accidents, natural disasters, lawsuits, and many more. These risks and challenges can not only interfere with normal business operations, but can also affect your stakeholders and ruin your business entirely. It’s your responsibility as a business owner to protect your business from any unexpected catastrophes and risks that could get you out of business.

Fortunately, there are many business insurance plans that can facilitate protection of any potential risks and mishaps that could affect normal business operations or the well-being of your employees and clients. Working with an insurance brokerage firm in Arlington, VA, can ensure you get the best coverage for your business’s unique needs. Here are the main types of insurance plans you need to protect your business:

Professional Liability Insurance

Professional liability insurance is inarguably one of the most crucial plans you need for your business. This insurance plan helps protect your business from negligence claims due to failure or mistakes performed. It provides coverage for the people harmed by your business activities. Having this insurance plan is crucial since general liability insurance doesn’t offer protection against claims caused by professional practices.

Whether you did anything wrong or not, your client can still sue you if they believe you made a mistake. Without professional liability insurance, you’ll have to pay costly legal defense costs out of pocket. Professional liability insurance can help protect you and your business from these claims, and your insurer will write it on a claims-made basis.

Commercial Property Insurance

Whether you own or lease your business premises, you must get commercial property insurance for your business. This type of business insurance provides coverage for damage or loss of company property caused by a wide range of events. This includes property damage due to civil disobedience, vandalism, fire, hail storms, wind, smoke, and fire. The property damage or loss can consist of business interruptions, lost income, damage to your business premises, computers, or even company papers.

However, your commercial property insurance policy often does not cover enormous destruction and damages to your business caused by events like earthquakes or floods. Hence, it’s best to consult with your insurance broker or agent to know what exactly your commercial property insurance covers and the best plan for your business.

Vehicle Insurance

If your business owns commercial vehicles, it’s vital to ensure they’re fully covered should they get involved in an accident. Commercial auto insurance helps in protecting you and your company drivers on the road while driving vehicles owned by the company. This insurance type provides coverage for physical injury and property damage claims from an accident caused by your company vehicles. This is crucial since personal car insurance won’t cover third-party claims resulting from a car crash with a company-owned vehicle. However, if your employees get involved in an accident while using their personal cars for business, they’ll be covered by their personal insurance.

Endnote

There is insurance coverage for virtually any kind of risk your business can face. Each insurance type varies greatly in costs and coverage amount from one insurer to another. Discuss your unique business risks and the insurance types available with your insurance broker. This can help you decide what types of insurance you need to fully protect your business. Other essential insurance policies your business needs include Workers’ Compensation Insurance, data insurance, product liability insurance, unemployment insurance, and home-based insurance.