Classes Of Business Insurance

Business insurance protects your firm from different risks every day. This insurance protects your financial assets, physical properties, and intellectual properties from lawsuits, property damage, vandalism, theft, loss of income, employee injuries, and employee illnesses. The coverage thereby protects your investment and hard work in case of a risk. Therefore, the best point to start is to talk to your insurer or their agents. The agent performs a risk assessment and recommends the best way to address every risk in your business. Insurance agents evaluate all possible property losses, liability losses, automobile losses, business interruption losses, key person losses, and employee injuries. If you provide enough details about your business operations to your insurer, they can suggest the best insurance policies and the level of risk that your business may encounter. This article discusses a few types of business insurance that your insurer may recommend

Workers' Compensation

Some states make workers' compensation insurance mandatory before licensing your firm. Your workers may take responsible care of themselves at the workplace, but some accidents are inevitable. Therefore, this insurance helps you compensate them for damages. In addition, this insurance is a great way to motivate workers and enhance their job satisfaction. Workers' compensation insurance assures the workers that they will receive medical care and a fraction of their income during the recovery period. The firm is also safe from lawsuits by workers due to the injuries sustained at work. 

Commercial Liability Insurance

Commercial liability insurance covers bodily harm, property damage, and personal injury caused by the business products, operations, or injuries that happen within the business premises. If your customers claim that your products harmed them in any manner, this type of insurance helps settle the issue by financing lawsuits and compensating the aggrieved party. Therefore, commercial liability insurance is comprehensive enough to cover a variety of risks the business faces. Your business may choose to add another party with whom it does business in this policy. 

Commercial Property Insurance

Whether rented or owned, your business premises face risks, such as fires, looting, and burglary. Commercial property insurance covers your premises and equipment against almost all other dangers. Still, if your firm is in an area prone to these risks, an additional policy is necessary. If your insurer offers this policy without covering your property against floods and earthquakes, consider adding such riders to this policy. This insurance also protects the equipment used to run the business. 

Commercial Auto Insurance

The cars, trucks, and vans used to conduct your business require insurance to protect your firm from losses. Vehicles and the employees operating them are constantly at risk of accidents, fires, and other dangers on the road. Your cars may also cause harm to other vehicles on the road, causing your firm financial damages. The specific insurance policies under this class include collision, bodily injury liability, uninsured motorist, medical payment, combined single limit, and comprehensive physical damage coverage. Ensure that your commercial vehicles are sufficiently insured to shield your firm from damages caused to or by the cars. 

The four main classes of business insurance include workers' compensation, commercial liability insurance, commercial property insurance, and commercial auto insurance.