Business insurance protects your business’s financial assets from risks and unexpected incidents that can occur during normal operations. Typically, businesses opt for multiple types of coverage to ensure comprehensive protection against unforeseen losses. Here’s what business insurance can cover:
Employees: Workers’ compensation insurance can help cover medical expenses and lost income for employees injured on the job.
Property: Commercial property insurance helps protect your business’s buildings, tools, or equipment from damage or destruction due to covered losses.
Commercial Vehicles: Commercial auto insurance can cover the cost of auto accidents that occur on the job, regardless of fault.
Customers and Clients: General liability insurance can help pay for medical expenses if a customer slips and falls into your business and files a lawsuit.
What Isn’t Covered by Business Insurance?
Standard business insurance policies might not cover:
- Losses from natural disasters, floods, and other major weather events.
- Customer property stored at your business.
- Intentional and fraudulent acts.
- Auto accidents (unless you have commercial auto coverage).
Also, read about Business Insurance 101
Essential Business Insurance Coverage Options
One of the most popular business policies is a Business Owner’s Policy (BOP), which generally includes business property, general liability, and business income coverages. Combining these coverages can save money and offer convenience.
Insurance helps protect against the full cost of bodily injury or property damage claims. For instance, general liability can help cover the costs of a claim and defense if a customer is injured in your store. It also helps protect your business from the costs of advertising errors.
How Much Does Business Insurance Cost?
On average, small business owners pay about $1,019 a year or $85 per month for business insurance with The Hartford. Costs vary based on factors like the type of insurance, claims history, industry, number of employees, and payroll.
Read about Why Do I Need Business Insurance?
By understanding and selecting the appropriate business insurance coverages, you can safeguard your business against various risks and ensure its smooth operation.
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