Insurance is vital to many businesses, regardless of whether they’re providing services, products, contracting, construction or any other operations. A lot of people, especially small business owners, wonder if it’s really necessary. Insurance, after all, is one of those things you pay a lot of money for, but hope never to use.
Is it safe to go without insurance? The answer is probably not, but you may not need the complete, comprehensive and expensive coverage that many pre-packaged, big business insurance providers deliver. It all depends on the business you’re running. Learn about the different kinds of business insurance policies, how to determine which kind you need, and where to get a tailored policy for your company.
Types of Business Insurance
There are a wide range of business insurance products available that are designed for specific purposes. For this discussion, we will be covering three common business insurances: General Liability, Property Insurance, and Professional Liability.
General Liability
Almost every business has the potential to create unintentional bodily injury or property damage to others. General Liability insurance is the first defense for claims or allegations of bodily injury or property damage. The policies include legal expenses either within the limit or outside of the limit of liability selected.
Property Coverage
Property Insurance is, as the name implies, coverage for tangible goods or real property owned by the business. The coverage is broken down into different parts including Building and Business Personal Property. If your business owns equipment, computers, furnishings, fixtures, or inventory, you likely have an exposure that can be covered by Business Personal Property Insurance. Conversely, if your business owns a building, Building coverage is the policy that covers the physical structure against loss from common perils such as lightning, fire, explosion, etc.
Professional Liability
Professional Liability is also referred to as Errors & Omissions or E&O. This coverage is designed to respond to claims or allegations that relate to providing or failing to provide professional services for a fee. Most licensed professionals such as architects, physicians, engineers, attorneys, and insurance agents should have this type of coverage.
One-Size-Fits-All Fits No One
Business insurance is a specialized product that usually needs to be customized to the actual business making the purchase. Many large insurance companies offer a one-size-fits-all approach, but many businesses are not best served by these products. If you value your business and want to cover the exposures appropriately, work with a local Independent Agent that can customize the products to fit your exact needs.
At Harris Insurance, that’s exactly what we do: build custom business insurance policies designed specifically for every one of our clients’ individual needs. If you’re ready to learn more about what kind of insurance you need and create a policy just for you, give us a call today.