There are many types of insurance you can get for your business. You may need a business owner’s policy, employment practices liability insurance, product liability insurance, or commercial property insurance. Here are the basic types of coverage. If you don’t understand any of these insurance policies, read this article and get a basic understanding of them. Here are some important points to keep in mind:
Business owner’s policy
A business owner’s policy (BOP) is a package of coverage that combines general liability insurance with commercial property insurance. It is more convenient and affordable, and the cost ranges from $500 to $4,900 depending on the type of business and its industry. Various insurance companies offer these policies, and the Hartford is one of them. You can get a free quote from them and compare the different options available to you.
A BOP is important for a small business because it protects assets from unforeseen loss. It covers financial losses caused by covered perils, such as fire, theft, wind, falling objects, and lightning. A BOP may include deductibles to cover your costs before the insurance company begins to pay out claims. If you don’t want to pay the deductible upfront, it is possible to customize your coverage by choosing a different insurer.
Employment practices liability insurance
If you have employees, you need employment practices liability insurance. This type of insurance covers the legal costs that a company incurs when a lawsuit arises. This type of insurance is especially important if your industry has a high rate of employee turnover. It can also protect you from claims of sexual harassment, discrimination, and wrongful termination. But how does EPLI work? Read on to find out how it can protect your business.
Although many people assume that an employment practices liability policy covers all types of discrimination, there are several nuances to these policies. Some policies exclude certain events, such as mergers and acquisitions, while others may include a specific set of circumstances. To avoid this, be sure to follow the laws regarding employment practices. In addition, your small business should offer mandatory sexual harassment training to employees. According to Deninger, nearly half of small businesses fail to offer such training. Not providing this training could leave your company open to a lawsuit. However, this can be a wise backup plan.
Product liability insurance
If your small business is involved in a product supply chain, product liability insurance is a must. While it can be expensive, it can protect your company from a lawsuit if a customer is injured because of a faulty product. Depending on your industry, you may need to buy separate insurance policies for product liability and general liability. Fortunately, most insurers offer product liability insurance and many have packages designed for specific industries.
Premiums vary, depending on the product’s risk level and your position in the supply chain. For example, a retailer selling handbags would have a lower premium than a manufacturer of insecticides. Likewise, premiums tend to rise when a product is imported from another country. However, if your business is selling products to retail locations, you need to obtain vendor coverage from all manufacturers, regardless of their location.
Commercial property insurance
While many commercial property insurance policies look similar, the specific coverages that a small business needs can differ widely. Whether it’s a policy covering your entire building or a simple liability policy, you should compare coverage options from different providers. Compare the price and coverage options of each policy, and be sure to review the coverage terms and conditions to make sure that they are correct for your business. This article will help you make an informed decision about commercial property insurance.
While it’s impossible to estimate exactly what your business’s personal property is worth, you can get a rough idea by keeping records of your purchases and inventory. For your business’s inventory, you should also consider its replacement cost, which compensates you in today’s dollars if your property is destroyed. Typically, replacement cost policies require higher premiums. It is important to consider the type of insurance you need to cover your inventory.
Errors and omissions insurance
An important aspect of errors and omissions insurance for small business is its ability to pay out in cases of mistaken information or service. In cases of mistaken advice, errors and omissions coverage can cover legal expenses and other related costs. There are several reasons why a client may be unhappy with your services or product. Many of these reasons are outside of your control, but knowing what your insurance coverage covers will help you deal with those situations.
Regardless of your industry, error and omissions coverage can help you protect yourself and your company from mistakes made by employees, subcontractors, and even customers. These policies typically operate on a claim-made basis. They also have a retroactive date, or the date the business purchased them. In other words, as long as you maintain the coverage, you’ll be covered.