Business Insurance 101: What Business Owners Should Know

Navigating the complexities of running a business involves more than just managing day-to-day operations; it also requires safeguarding against potential risks. Business insurance is a critical component of this risk management strategy, offering protection against unforeseen events that could jeopardize your business’s stability. The following is a guide to help business owners understand the essentials of insurance.

Types of Business Insurance

The following are common types of business insurance coverage:

• Property insurance may cover the cost of damage to your business property, including buildings, equipment and inventory. It may also include business interruption insurance, which compensates for lost income during a temporary shutdown.
• Liability insurance may financially protect your business from legal claims due to injuries, accidents or negligence. This includes general liability insurance and professional liability insurance, also known as errors and omissions insurance.
• Workers’ compensation insurance is mandatory in most states. It may assist in covering medical costs and compensating lost wages for employees who are injured while working.
• Business auto insurance may help cover vehicles owned by your business, offering financial protection against accidents, theft and damage.
• Cyber insurance is essential for businesses handling sensitive data. It may help cover costs related to losses from data breaches and cyberattacks.

Understanding Policy Details

The following are key policy details to understand:

• Premiums—The amount you pay for your insurance policy. Premiums vary based on coverage limits, deductibles and the level of risk associated with your business.
• Deductibles—The amount you pay out-of-pocket before your insurance coverage kicks in. Higher deductibles typically mean lower premiums.
• Policy limits—The maximum amount your insurance will pay for a covered loss. Make sure your policy limits adequately address the potential risks your business might face.

Learn More

Contact Ensured Advantaged today to learn more about business insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.