Not carrying enough insurance protection for your business can be an expensive proposition. While you may experience short-term financial savings, they are outweighed by the risk of long-term losses. If you’re concerned about spending too much for insurance, consider starting with general liability, commercial property and workers compensation insurance coverages. Here’s how each will protect your business.
General liability protects your business in case someone who isn’t an employee experiences a loss because of your business activities. Whether it’s bodily injury or property damage, this part of your policy will cover any payments towards attorneys, settlements or judgments.
Commercial property ensures that you get reimbursed in case your property is lost or damaged. This part of your policy will pay to repair or replace the covered items and can even reimburse you for revenue you missed out on because of your loss. Items covered can include your building, equipment, furniture and even electronic data.
Even if you only have one employee, it’s recommended that you get workers compensation. If the employee gets hurt at work, your policy will cover any legal and medical fees. It can also be used to pay the employee’s salary while he or she is out of work.
General liability, commercial property and workers compensation insurance are overarching coverages with more specific options available depending on your industry. Work with your insurance agent to design the best combination of coverages that meet your needs.