The Complete Guide to Business Insurance: An Introduction

Insurance is an invaluable asset, whether your business is a small family-owned shop or a large corporation with thousands of employees. While you may be able to recover from accidents and mistakes if they happen in regular business activities, such an occurrence could potentially devastate your company if it were not covered by insurance. Therefore, having adequate coverage for your firm should be one of the top priorities on which to focus when setting up your company’s operational policies. This guide will highlight many essential aspects that you need to know about how to best go about selecting and purchasing different types of insurance that you’ll likely want for your business over time.

The Different Types Of Business Insurance And What They Cover

There are two types of business insurance in peoria az that you are likely to need to keep your company running smoothly. The first is property insurance. This covers loss or damage to the physical assets that make up your business’ infrastructure. These include items such as equipment, tools, materials, furniture, and fixtures. You will also want to ensure that your building itself is adequately covered against natural disasters, fire, theft, and vandalism attacks.

The second type of coverage you’ll want for your company is liability insurance . This protects your company from incurring damages when one of its employees or representatives causes injury or damage while performing his or her job duties. Examples would include workers’ compensation cases stemming from injuries on the job site which were caused by an employee’s negligence.

Businesses may also need to take out additional types of insurance coverage that are more specific and unusual in nature. These kinds of policies include:

* Automobile liability . This will insure you against any potential claims made by others for accidental bodily injury and property damage sustained due to one of your company’s vehicles hitting another vehicle or object.

* Boiler and machinery coverage . It covers the cost of repairs or replacement if your business’ boilers, heating systems, refrigeration equipment, or other mechanical devices break down due to fire, smoke, or steam leakage as the result of faulty workmanship during manufacture.

* Employment practices liability (EPL). If you have employees, this type of coverage protects against wrongful termination claims and harassment-related lawsuits.

* Insurance against theft and other losses. This will help you get back on your feet if any of your business’s items are stolen or damaged by fire, natural disaster or vandalism.

* Professional liability coverage . If you operate a service company such as an advertising firm, law practice or architecture firm, this type of insurance protects against claims for damages made by clients who feel they did not receive their money’s worth due to faulty workmanship or misconduct that violates professional standards. The client would then turn around and file suit against the respective professional in civil court to recover monetary damages suffered as a result of the problem.