Businesses must take steps to protect themselves from legal litigations and financial losses. Business insurance is a policy that can do so. A business owner can purchase one or several types of business insurance to protect the company. The business owner would generally pay a monthly premium to maintain an insurance policy. When damages or possible legal issues occur, the insurance provider would pay the insured business or the injured party.
Three main types of business coverage exist. These include general liability insurance, product liability insurance, and commercial property insurance. General liability insurance protects a business from personal injury claims. Personal injury claims can occur when a consumer or employee obtains an injury in the building. A general liability insurance policy would pay for bodily injuries and medical bills.
Product liability insurance covers companies that manufacture cars, toys, medications and other products. A business policy of this type would cover situations in which a malfunctioned product harms a consumer.
Commercial property insurance covers the building in which business operations occur. The policy covers damages such as fire damages, theft, vandalism, hailstorms and more. Small, medium and large business owners can benefit from commercial property insurance.
Other types of business policies such as home-based business policies and professional liability insurance exist. Professional liability insurance is a policy that is suitable for medical professionals, psychiatrists and lawyers. It protects the business owner from claims of negligence and malpractice. For example, a patient who suffers a botched surgical procedure may file a malpractice suit. The liability insurance policy would cover the injured party’s expenses.
Home-based business policies can cover damages that occur within the home of a person who operates a business. Such policies are limited. Therefore, a home businessperson may have to purchase several policies to receive the protection that he or she needs.
Wide ranges of organizations offer business protection policies. An interested person can go through a broker to find the best coverage for the business. Alternatively, the person can perform an online search using the appropriate keywords. Getting as many quotes as possible is wise for finding the right policy.