Introduction

Business insurance is a type of insurance that provides coverage to the insured business against any damage or loss due to any misshapen like natural disasters, thefts, vandalism, lawsuits, losses due to illnesses of employees’ illness, injury or death.

Some unforeseen incidents may lead to partial or complete closure of a business. In such cases, the Business Insurance policies play their role. Business Insurance helps enterprises by covering their financial assets, intellectual property and physical location from an unexpected incident causing financial losses.

Types of Business Insurance:

There are several options available to protect businesses from financial losses. The coverage your business requires depends on the things such as the industry, its assets, location, number of employees, and size. It is possible that the insurance requirements may change as the business grows.

Following are the different types of business insurance policies:
General Liability Insurance Policy:

This is one of the basic insurance policies that provide coverage against any liability claims arising from a third party bodily injury or property damage. In case any lawsuit is arising against the enterprise, the business owner may be liable to pay huge legal fees. Without this cover, the entire expense will be on the enterprise.

Professional Liability Insurance Policy:
Professional Liability Insurance, also known as Errors and Omissions Insurance, is a type of business insurance that helps enterprises to protect against damages caused in the performance of a service. It takes care of any losses that an enterprise may have faced because of negligence in rendering any services. Some insurers provide professional liability insurance that is specific to a certain profession.

Workers’ Compensation Policies:
Also known as Employee Insurance, this policy under company insurance helps a business owner to provide legal liability coverage for reimbursement to employees for bodily injury or death caused due to accidents at workplaces. It protects the business owner from being sued by an injured employee for negligence to get benefits. It also covers occupational diseases arising out of and in course of employment.
In other words, a worker’s compensation policy covers the statutory liability of an enterprise for the death, bodily injuries of its employees caused by accidents during the course of their employment.

Commercial Vehicle Insurance
This policy protects businesses when their vehicles are involved in a collision or are stolen, vandalized, or damaged. Further, it provides financial support to repair or replace the vehicle. It also covers related medical expenses and third-party property damage. The premiums are higher for commercial auto insurance policies as compared to the standard motorist policy. The reason behind higher premiums is that vehicles for business purposes are often more susceptible to risk.

Insurance to cover the Loss of Income
This policy protects the insured to pay off the fixed costs if the business is unable to operate after a disaster. Generally, this coverage is not available as a separate policy but is either appended to a property/casualty policy or included in a comprehensive package policy as an add-on coverage.

Advantages of Business Insurance Policy

The benefits are as follows:

1. Company insurance policy differs from state to state. Generally, it protects the business against losses due to an interruption of the normal working of the business by covering the disasters like fire or other natural calamities.
2. It provides credibility to the company by getting its business insured
3. Business insurance policies offer the safety of the employees and help the employers retain the talents within the company. Eventually, it increases the growth of the company.
4. These days customers also consider those companies that are well insured with business insurance. The assets of a company such as computers, furniture and other physical assets are also well-protected from theft if it is covered by a business insurance policy.