Overview
General liability insurance protects businesses from bodily injury or property damage claims. Professional liability insurance covers mistakes in professional services. Business income coverage compensates for lost income due to property damage. Commercial property insurance protects buildings and equipment. Workers' compensation covers employee injury or illness costs. Commercial auto insurance covers company vehicle accidents. Data breach insurance helps with data breaches. Commercial umbrella insurance extends other liability policies' limits. Employment practices liability insurance covers employment-related claims. A business owner's policy (BOP) combines general liability, commercial property, and business income insurance. Hazard insurance is another term for commercial property insurance.
Key Points
General Liability Insurance: General
liability insurance covers claims of bodily injury or property damage
caused by the business and includes product liability insurance for
claims related to business products.
Professional Liability Insurance:
Professional liability insurance addresses claims from mistakes in
provided professional services and is also known as errors and
omissions insurance or E&O insurance.
Business Income Coverage: Business income
coverage helps replace lost income due to covered property damage,
such as fires or theft.
Commercial Property Insurance: Commercial
property insurance protects owned or rented business properties and
equipment.
Worker's Compensation Insurance: Workers'
compensation insurance provides benefits for work-related injuries or
illnesses and is mandatory in most states with employees.
Commercial Auto Insurance: Commercial auto
insurance covers property damage and bodily injury from accidents
involving company vehicles.
Data Breach Insurance: Data breach insurance
aids in responding to data breaches, including notifying clients and
offering credit monitoring.
Commercial Umbrella Insurance: Commercial
umbrella insurance extends liability policy limits when claim costs
exceed policy limits.
Employment Practices Liability Insurance:
Employment practices liability insurance protects against claims of
discrimination, sexual harassment, and wrongful termination.
Business Owner's Policy (BOP): A business
owner's policy (BOP) combines general liability, commercial property,
and business income insurance.
Hazard Insurance: Hazard insurance is
another term for commercial property insurance, protecting business
properties and equipment.
Summary
For small businesses, insurance is essential to mitigate risks and protect against liabilities. Key coverages include general liability, professional liability, business income, commercial property, workers' compensation, commercial auto, and data breach insurance. Commercial umbrella insurance extends existing policy limits, while employment practices liability covers employee-related claims. A Business Owner's Policy (BOP) combines essential coverages for comprehensive protection. Hazard insurance protects business properties and equipment. Tailoring policies to specific needs and complying with state laws ensures financial stability and resilience.
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