What Does Business Insurance Cover?

Starting a business often takes a sizeable financial investment, and continuing to run the business has a certain level of financial risk. So why wouldn’t you seek protection for your business’ financial interests? A comprehensive business insurance policy can provide the protection you’re looking for.

The best way to get ideal coverage is to work with your independent insurance agent to build a customized policy. This policy should cover both property and liability concerns. Let’s break down these components a little further.

Property

Most businesses require a lot of stuff to run each day. This may include desks and other furniture, computers, printers, other electronics, specialty equipment, raw materials, inventory and more. Not to mention, the building itself will need protection if it’s owned and not rented.

To ensure your policy includes enough coverage, it’s recommended that you create an inventory. Make note of these assets and their worth, then calculate an overall total value estimate. While a total loss—for example, the building burns down completely in a fire—is uncommon, it’s best to have that protection in place in case the worst does occur.

Liability

Liability coverage protects your responsibility to customers, visitors and other third parties. Your business must provide a safe environment, as well as upholding the promises made while providing services.

General liability coverage protects third parties who suffer an injury or property damage while on business property. Every business should consider this coverage option. In addition, there are many more types of liability coverage to protect the various risks faced by different businesses.

If you provide services, you may need professional liability coverage. Product liability coverage protects your customers from products that may cause harm or illness. Directors and officers liability coverage protects your execs and/or board from certain risky situations.

Ready to protect your business? Your agent can help determine which coverage options are most suitable, along with searching for policies on your behalf.