Business Insurance – Three Quick Tips to Get You Started
Own your own business? Learn how to protect it with the right business insurance policy.
Business insurance is a vital form of protection for any business owner. It helps to safeguard your business against financial losses that could occur if you were to be held liable for damages or injuries caused to third parties.
General business liability policies can cover many risks, including property damage, personal injury, and even advertising injuries. In addition, if you are held liable for damages, liability insurance can help to cover your legal expenses and any settlements or judgments against you.
Without liability insurance, you could be on the hook for a costly accident or injury, which could jeopardize your business’s future. For this reason, it is essential to make sure that your business insurance policies adequately protect you.
Tip# 1 - Learn the Lingo
There are many different types of business insurance policies to consider. However, here are five of the most common types of policies you can expect to encounter in your search.
General Liability Insurance: covers damages incurred from lawsuits over third-party injuries, third-party property damage, or advertising injuries like defamation or copyright infringement.
Commercial Property Insurance pays to repair or replace stolen or damaged property for your business, including your workspace, furnishings, inventory, and equipment.
Business Owner’s Policy (BOP) combines general liability insurance with commercial property insurance, often at a lower combined cost than when purchased separately.
Professional Liability Insurance, also known as errors and omissions coverage (E&O), protects businesses that provide professional services. It covers lawsuits over mistakes, oversights, and negligence.
Workers’ Compensation covers medical expenses and lost wages for work-related injuries or illnesses. This type of coverage usually includes protection for employers from employee lawsuits over negligence.
Tip #2 - Assess Your Risks
Every business is different, and therefore, so are the risks. Understanding the inner workings of your company and industry is crucial when picking the business policies necessary to protect your investments. For example, a store owner will have different risks associated with their customers (slip and falls, allergies to products, etc.) than an accountant for improperly filing taxes on behalf of their client. The more you understand the potential risks in your industry, the easier it is to protect yourself from them with the right policies.
Tip#3 - Ask Your Insurance Provider
Insurance may seem cut and dry, but just like the finite details that go into running your business, there is a lot to consider protecting it. So don’t hesitate to ask for help. At LBP Insurance, we can assess your insurance needs by getting to know the finer details of your industry and personal investments. Contact us today to get started.