Many of us know how difficult starting and running a business can be. Every investment is an inherent risk, and for a family-run business, it can take just one instance of bad luck to shut a business down. Today, in these difficult times, mitigating risk is more important than ever.
Commercial insurance is a great way to address those issues. Having a good insurance policy is essential to the success of many small businesses. We’ve covered the types of commercial insurance before, such as business liability insurance, worker’s compensation insurance, and commercial auto insurance.
Here are a few more for your consideration:
Small construction outfits and independent contractors can use the builder’s risk insurance to protect a structure while it is still being built or remodeled. It’s dependent on the determined value of the structure once completed, and it can cover incidents that may destroy or damage the property. Those include fire, hail, and vandalism.
General Liability Insurance
This type of coverage is different from professional liability insurance. Professional liability insurance is meant to cover incidents in which a business fails to deliver a product or service through their own fault. On the other hand, general liability covers a wider array of incidents in which the business is not directly at fault.
General liability insurance can be used for a situation involving premises liability. This is the liability business is subject to when a third party is injured on their property, such as when a customer slips on a puddle in a restaurant. The policy can also cover slander, libel, and copyright infringement lawsuits.
In the event of a disastrous incident resulting in a business being unable to profit, loss of income coverage can provide some financial relief. The current pandemic, for example, has led a lot of businesses to stop operating. Companies with loss of income insurance may have a better chance of surviving events of similar scale.
Cyber Liability Insurance
This is an extension of data breach insurance, and it can go toward legal fees and expenses related to a cybercrime incident involving your business. Other covered costs are computer repairs, recovery of compromised data, and the restoration of personal identities of customers affected by the incident.
This type of liability insurance is an additional layer of protection in a basic professional liability policy. It is meant to cover the difference when your insurance claim due to an incident exceeds your existing policy.
Say you end up having to pay a million dollars for damages. If your existing policy only covers $400,000, you can file a claim on your umbrella insurance policy, which can cover the rest.
More Protection Is Always Better
In highly unpredictable times, protection against uncertainty should be at the top of everyone’s list. Nowadays, a small business can do all the right things but still fall apart. Consult with our team at Panorama Insurance Agency for more information on how you can get better coverage.