Business owners conduct risk assessments and identify any risks that could threaten their company or cause a financial loss. Insurance provides coverage for liabilities and the company’s assets. Each policy provides adequate coverage for assets and common liabilities. Reviewing the 5 types of coverage the business needs shows the owner how to protect their business effectively.
- Commercial Auto Coverage
Commercial auto coverage protects against liabilities such as accidents caused by the commercial driver. The level of coverage selected by the business owner defines what the policy covers. For example comprehensive and collision cover the commercial vehicle. Liability covers the other driver, their medical expenses, and auto repair requirements. The terms of the policy limit coverage to business hours. The driver must be performing work duties to get coverage for an accident. If the driver was on their personal time or using the vehicle for personal reasons, the policy won’t cover the accident. If the owner wants to use the vehicle for personal use, they need to purchase a non-commercial policy. Business owners can learn more about auto coverage by contacting Haberman Insurance right now.
- Commercial Property Insurance
Commercial property insurance provides coverage for the property and all equipment inside the property. The terms of the policy define what events are included in the coverage. Typically, coverage applies to fires, natural disasters, criminal vandalism, and falling debris. If the property is damaged, the owner files a claim with their insurance provider. A total loss gives the property owner the market value for the property. However, some policies provide true replacement values. The true replacement value is the cost to rebuild the property in the same location. If the owner wants to buy another property, they get the market value.
- Cyber Liability Coverage
Cyber liability coverage protects the business owner if a cyber-attack happens and customer data is stolen. It provides funds to replace any money the customer lost because of the data breach. IT standards require companies to use robust security schemes to protect the data centers and the company’s network. Any violation of standards could present a serious liability for the company.
- General Liability Insurance
General liability insurance provides financial help if a visitor becomes injured at the business property or while using their products. The insurance provides funds to cover financial losses. It will pay medical expenses for a victim that sustained an injury.
- Worker’s Compensation
Worker’s compensation insurance provides coverage for worker-related injuries. It pays the injured worker’s medical expenses and provides wage replacement if they cannot return to work immediately. The insurance is required if the company hires more than one worker. The employer must file a claim through the insurer if any worker is injured in the workplace. The workplace is defined as the business property and any off -site area where the worker is completed their job duties. Business owners need to purchase insurance services offered by Strong Tie to protect the interests of the company and all its assets. The assets include the property, equipment, and any vehicles used for the business. Discussing the policies with an insurer helps the business owner protect their company thoroughly.