What new business owners should know about commercial insurance.
If you have just launched a business, then you know how much time, effort, and money you have invested. This is why it’s so important to protect your company and everything that it represents for you. The best way to safeguard your company is with the right business insurance. Not sure where to start when it comes to covering your business? Here’s what new business owners should know about commercial insurance.
Why You Need Coverage
First, it’s important to understand why you need to secure insurance for your business. In the simplest terms, business insurance is designed to protect both your commercial and personal assets. Your commercial coverage offers financial protection in the event that your business sustains damage or is on the receiving end of a liability claim. Your coverage can help you pay for repair costs, compensation expenses, legal fees, and so on. Without the right commercial insurance in place, you would have to cover the full cost of business damages or liability issues out of your own pocket. This, in turn, could compromise your business’s revenue and even your personal savings. This is why it’s so important to have the financial protection that only commercial insurance can offer.
Essential Business Insurance Policies
With all the coverage options out there, it can be difficult to determine which policies are right for you. Some of the most basic and essential forms of commercial coverage include the following:
- Business Owner’s Policy (BOP)– BOPs are great options for small businesses because they combine general liability and commercial property insurance in a single, easy-to-manage policy. BOPs offer coverage for third-party claims of bodily injury, property damage, product liability lawsuits, repair/replacement costs for damage, and so on.
- Professional Liability Insurance– Also known as errors and omissions insurance, this type of coverage is essential for businesses that provide professional services. Professional liability policies offer financial protection in the event that your company is accused of making costly mistakes while rendering services. This type of insurance is particularly important for architects, engineers, IT professionals, accountants, consultants, lawyers, medical professionals, and so on.
- Cyber Liability Insurance– Today, most businesses have some type of digital element to their operations. If your business collects, stores, or manages customer data or conducts business over the internet, then you face the risk of cyberattack or data breach. Cyber liability insurance is designed to cover the losses associated with a major cyberattack, including the cost of informing affected customers, restoring compromised information and identities, ongoing credit monitoring, repairing affected computer systems, and so on.
This is what new business owners should know about commercial insurance. Do you have additional questions about your business insurance needs? If so, then contact the experts at Promised Land Insurance Group. We are ready to get you the coverage that you need today.