Every business carries its own risks. Some businesses risk their employees getting injured operating heavy machines while others have risks associated with the private information of their customers. No matter what types of risks your business faces there are four basic insurance coverages that all businesses need. Most Insurance carriers like to bundle these coverages in to Business Owners Packages (BOP) based on specific industry. This can be a good way to save money and ensure there are no holes in your coverage. Regardless of whether you bundle your insurance together or purchase them all separately, there are four coverages all businesses need.
General Liability Insurance
General Liability Insurance is the most basic form of business insurance. This insurance provides coverage to protect a business from injuries that occur to both person and property because of the normal operations of that business. General Liability Insurance can cover something as simple as a client tripping over their high heels while walking into your office, to a fire in the basement of your building. It can also cover incidents like advertising injury, which could occur because of the unintentional use of a competitors advertising material. General Liability can also cover some forms of electronic data liability. One tip to help keep down your premium is that it is beneficial to have a formal safety plan in place when applying for a General Liability Insurance Quote.
Commercial Property Insurance
In general, commercial property insurance provides coverage for a wide variety of events including fire, smoke, wind, hail, vandalism, and civil disobedience. Policies often list included or excluded coverages. For this reason it is important to speak with your agent to ensure you know what is and is not covered. Frequently, some parts of coverage, like earthquake or hail damage, may have separate deductibles than other parts of coverage.
Workers’ Compensation Insurance
Workers’ Compensation Insurance is a state mandated insurance coverage required by nearly every state in the country. The basic purpose of Workers’ Compensation Insurance is to assure that injured workers get medical care and compensation for a portion of the income they lose while they are unable to work. Workers receive benefits regardless of who was at fault in the accident. In most cases if a worker is killed while working, workers comp (as it is often abbreviated) provides death benefits for the worker’s dependents. Also, Workers’ Compensation Coverage prevents the employer from bearing the costs of injuries that occur during normal business operations. One tip for reducing premium is to be honest with your agent about the work you do and do not participate in. This can ensure you are placed in the proper Workers Compensation Class Codes.
Employee Practices Liability Insurance (EPLI)
EPLI protects a business from claims by employees, candidates, and former employees involving various violations of their legal rights. This type of insurance is a safeguard for employers in today’s litigious society. It provides legal protection for the business, owners, officers, directors, and other employees. Even if a suit brought against your company is unfounded it can run up costs very quickly causing you to spend time away from work and money for legal defense.