Types of Business Insurance - What's Best For You?

Business insurance is a standard term used to refer to insurance against business risks. In insurance parlance, business insurance is categorized into nine (9) broad types. When availing of business insurance policies, a practical knowledge of its kinds comes in handy. What are the types of business insurance and their coverage are concisely outlined below.

Property Insurance

Property insurance is an indemnity against damage or injury to business properties. This includes rented or owned buildings, machineries, equipment, goods and merchandise. The damage covered may involve loss due to the happening of an event, whether by acts of God or acts of man. Within this category are insurance against theft, fraud, fire, flood and other natural disasters.

Casualty Insurance

In most instances, casualty and property insurance are offered together as one insurance policy. Although the two types of insurance insure different risks - property insurance to location and casualty insurance to business - a lot of insurers find it convenient to consolidate them for marketing purposes.

Liability Insurance

This type of insurance indemnifies claims arising from legal restrictions, negligence or malpractice. Among others, liability insurance may take the form of insurance against environmental or professional liability which causes injury to others. It shields the insured business from liability and claims against its acts, negligent or otherwise.

Commercial Auto Insurance

If the nature of the business heavily relies on automobiles, commercial auto insurance is required. This kind of insurance underwrites vehicles utilize by the business against claims due to the acts of the insured or the insured's employee. This also covers loss or injury suffered by the insured in fixing damage vehicles or claims by third parties who were injured through the negligence of the insured or the insured's agent.

Workers Compensation

Worker's compensation insurance provides employees with immediate fund in cases of on-site injuries. However as a trade-off, employees are required to abandon any legal recourse against their employer. Under this insurance, benefits may involve payment of lost and expected wages, hospital bills, support for the dependents and moral damages. These provisions vary across jurisdictions.

Business Interruption

There are instances when business is confronted with operational glitch due to damage of its machinery and facility. As a result, flow of income is compromised. As a measure of protection, business profits are insured under the Business Interruption Insurance. In industry practice, this kind of insurance policy, along with casualty insurance, is integrated into the comprehensive property insurance.

Health Insurance

This type of insurance is one of the common forms of business insurance provided by the employers. Insurance coverage differs between employers. Some employers provide either comprehensive or limited coverage which may be renewable for a stated period of time (monthly, annually) or for a lifetime.

Life and Disability Insurance

Life and disability insurance provides business with a measure of protection in times of untimely death or disability of employees vital to the operations. It insures the business from sudden occurrences affecting their employees to whom it has insurable interests.

Now that you are armed with this information, you may start considering buying business insurance that suits your business needs. For a more detailed explanation, you may contact your insurance agents. So, go ahead!