Understanding Business Insurance

Understanding Business Insurance

The majority of businesses carry some form of insurance policy, but not all business owners realize that there are several forms of coverage they should have. Most stick with liability insurance without considering Fidelity insurance policies. In reality, though, both these common policies and other types of less common Business insurance such as interruption insurance, are pretty essential.

Minimizing Risk
The best way for you to determine what type of coverage your business needs is to consider what potential risks there are that could disrupt its operation. For instance, those who operate commercial businesses that are open to the public really need both Liability Coverage and property insurance, while offices that handle sensitive information can benefit just as much, if not more, from policies that cover theft and embezzlement.

Commercial Liability
This form of insurance policy covers claims that are made against a business by third parties. These claims often stem from accidents or injuries occurring on the business premises. Certain types of policies also cover property damage, damage to company products, or even independent contractors.

Protection from Dishonest Employees
It’s also possible for business owners to take out Commercial Coverage policies that protect them from dishonest employees. This is particularly relevant for companies like financial institutions, where some employees have access to confidential client information. With the right insurance policy in place, you don’t have to worry about the damages caused by unauthorized employee activities.

Business Interruption Insurance
The purpose of this specialized and lesser-known type of commercial insurance policy is to cover any damages or losses that occur when businesses must shut down their operations. In order to receive benefits from a business interruption insurance policy, the business owner must usually prove that the interruption caused a significant loss of income. The policy will then provide compensation for any income that could have been made had the interruption not occurred, restoring the business to its former position.

Choosing the Right Policy
Many policies contain ambiguous wording and incontestability clauses. If you are concerned about how your current commercial insurance policies may be leaving certain aspects of your business vulnerable, we can help. Check us out online today to learn how.