The most common types of commercial insurance include general liability insurance, which covers areas such as bodily injury, property damage, and personal injury; commercial property insurance, which covers commercial property and equipment owned or rented; business income insurance, which covers lost income so you can pay. Business insurance is a form of risk management used to protect you and your company from financial losses in the event of an accident or crisis. According to Rorie Devine, chief technology officer at Gro, Team, it's vital for companies to apply for insurance because it will help them cover costs related to property damage and civil liability claims. Liability protection policies provide legal liability coverage for all the ways your business could be sued.
This includes bodily injury, property damage caused by your company (as opposed to damage to your company's property), injuries related to advertising, work practices, and errors or omissions. The most common types of liability policies include general insurance, general commercial insurance, liability insurance for directors and officers, and professional liability insurance. Try Shopify for free and explore all the tools and services you need to start, manage, and grow your business. Cyber insurance can include data breach insurance (which is good for helping small businesses recover) and cyber liability insurance (aimed at larger companies that need more coverage).
Commercial property insurance covers damage to your business property from fire, storm, theft, and other property-related events, depending on the policy. When buying small business insurance and comparing policies, keep in mind that your rates will depend on the specific characteristics of your business. Simply put, in the event of injury or damage, your company's insurance reimburses the company, in full or in part, for the costs. If you own your car, truck, or van and only use it occasionally for work, you might be able to get by with standard personal auto insurance designed for business use.
If you're operating a home-based business, you'll likely need additional coverage for equipment and inventory. Crime insurance can protect your company from financial losses due to criminal activities, such as computer and fund transfer fraud, employee dishonesty, falsification and alteration, the loss of money and values, and the theft of your customers' property. Commercial auto insurance is similar to personal auto insurance; it protects your cars, trucks, or vans in the event of damage, injury, or liability claims. There are many types of business insurance for businesses, including property damage coverage, legal liability and employee-related risks, among others.
Equipment, it's vital for companies to apply for insurance because it will help cover the costs associated with property damage and liability claims. It protects against the risks of running a company and is acquired by organizations that have a board of directors. Consider consulting a professional financial advisor who can review the options for types of policies that best suit your company. If your company ships a defective product and needs to recall it, product recall insurance can help you financially do so. Protect your business against losses caused by physical and technological disasters with policies such as business interruption insurance and cyber insurance.
B2C companies often use E&O coverage to protect themselves against claims that their services caused financial problems or bodily injury to their customers...
