Different Types of Insurance for Business
Experts believe that a solid commercial insurance coverage will significantly reduce the financial risks associated to handling a business. To make sure that an insurance policy is extensive and can be effective in protecting the assets and finances of a business, this should provide coverage for property damages, liability, and worker's compensation.
Insurance policy is very important for any business as it protects the equipment, buildings, supplies, and other assets while reducing certain financial risks always associated with handling a business.
According to business experts, the basic types of commercial insurance are property, worker’s compensation, and liability coverage. To have a better understanding for each of this policy, here is the explanation:
In business, there is a risk of damages and losses in property and equipment. With this consideration, owners should have a property insurance that will reduce the financial risk in the event of fire, flood, earthquake, and other natural calamities. Meanwhile, some property insurance also covers damages from criminal activities like theft and vandalism.
In purchasing a property insurance, a person should know what are the policies that are important for his business. For example, if a business involves expensive machineries and equipment, it is important to have an Equipment Breakdown Insurance that will allow a businessman to reimburse operation interruption losses and damages from equipment.
If a business is located in a high-rate crime area, it is ideal to have a Crime Insurance that will allow businessmen to recover damages resulting from robbery, burglary, theft, and vandalism.
According to corporate lawyers, most states require or at least urge businessmen to have a liability insurance that will help them pay for product-related lawsuits and property damages and bodily injuries they have caused to a third party.
For example, Slip and Fall Insurance will help store owners to pay the hospital expenses of a customer who slipped and hurt himself within the store’s premise. However, this particular insurance only applies if the policyholders have failed to provide a safe premise to their customers; this means that anyone who gets injured due to his own negligence will not receive compensation from this coverage.
Another type of Liability Insurance is the Malpractice Coverage (also called Professional Liability Insurance) that will pay for the injuries caused by the negligence of a professional. For example, a doctor did not follow the right treatment in line with the medical standard of care which resulted to injuries to a patient.
Worker’s Compensation Insurance
Most private employers in the US are required to have a Worker’s Compensation Insurance that will cover the hospital expenses and loss of wages of a worker who sustains job-related injuries and illnesses, regardless if he is at-fault or not.
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