What is business Insurance? and Types of Business Insurance

If you are running your business and want to cover your risk then you should definitely get your business insured. business insurance.  Such incidents can cause major losses to your business.  Business insurance can also protect the equipment and machinery you need to stay in business.

Why Should You Insure Your Business?

It is very important for every businessman to assess the needs of their business as they have extensive financial exposure in case of any loss. If the owner of the business does not feel that they have the ability to assess business risk effectively and the need for insurance coverage, they must look for an experienced, licensed, and reputable insurance agent. Business insurance protects the business from fire, theft, professional liability, general third party liability, compensation towards workers, medical expenses, etc.

Types of Business Insurance

There are several options available for coverage for businesses. The coverage your business requires depends on the things such as the industry, its location, number of employees, and size. Different types of business insurance policies are as follows:

1. Liability Policies: This policy helps your business bear the cost of liability claims arising from a third party injury or property damage. The most common liability covers include- general liability, public liability, professional liability, and commercial umbrella insurance.
2. General Liability Insurance: General Liability Insurance is one of the basic business insurance policy that provides coverage against any liability cost arising out of loss or damage caused to a third party or property.
3. Professional Liability Insurance is the type of business insurance that provides protection against damages caused in the performance of a service. Also known as Errors and Omissions Insurance, it takes care of any losses that you may have faced because of negligence in rendering any services.
4. Product Liability Insurance: If your business is into manufacturing, product liability insurance is necessary. It is useful in covering the expenses of a lawsuit arising due to damages caused by your products.
5. Vehicle Insurance: Any vehicle used for business should be insured. In India, it is mandatory to have third party insurance, be it a private or commercial vehicle.
6. Commercial Vehicle Insurance: If your business requires a commercial vehicle then you must insure your vehicle.  It provides protection against any damage caused to the vehicle or the driver or to a third-party in case of an unforeseen incident like a traffic collision, accident, fire, theft, etc
7. Business Interruption Insurance: This type of policy is designed for a business that requires a physical location such as retail shops. Business interruption policy comes in handy in case a business faces loss due to the circumstances that cause a commotion to the normal course of business.