For a business many different types of insurance exist, including property insurance, liability, commercial auto, workers compensation, group health, life, disability income, “key man” insurance and others.
Below are some of the more common types of coverage available however this is not a complete list and, as always, we recommend you contact us to thoroughly review the needs of your business.
Property Insurance – covers the building or buildings and contents of the business. Outdoor signs, crime coverage, property of others, glass coverage, etc., can be covered as well, depending on the needs of your business.
Liability Coverage – covers what you could be obligated to pay due to bodily injury or property damage to others. If you do not own your building, your landlord normally would need to be added as an additional insured on the policy in order to protect them. Liability covers the premises and operations of the insured, as well as products and completed operations.
Commercial Auto – is similar to personal auto coverage but is intended for vehicles used in the course of business. For example an employee is making a delivery, backs up and dents another vehicle in a parking lot. The property damage portion of the policy would pay for the damages to the other vehicle.
Workers Compensation – protects your employees if they suffer job-related injuries. The policy pays the medical bills for the employee who is injured on the job. If there is time off from work due to that injury, the insurance pays disability income to the injured worker.
Key Man – protects key individuals in a business. If you are operating with a business loan, your banker may require “key man” insurance (or life insurance) as a way for the bank to get its money back if you are incapacitated in some way. Sole proprietors generally don’t carry key man insurance; however, a partnership may have key man insurance.
Another scenario in which you might want key man insurance is if you employ one sales person who generates 80 percent of all your revenues. If that person is incapacitated, it may take you two or three months to replace her. Key man insurance would cover the difference in the revenue you produce until the person can return to the job or is replaced.
Other types of insurance may be necessary or unique to your particular business. For instance, if you operate a desktop publishing business out of your own home, you may assume that your homeowner’s insurance will cover any theft or destruction of computer equipment. Some homeowner’s policies may, but others may set a limit on claims for computer equipment that is much less than you have invested. Again, every business is unique and we recommend you contact us to thoroughly review your business needs.