Is General Liability enough?

6 types of business coverage and what they insure.

All business owners agree on one blanket rule: at the very least, they need General Liability Insurance. It can protect them from costs associated with a wide swath of ills, from customers’ bodily injuries to slander.

But depending on the type of business you run you might need more protection than general liability can give you. One lawsuit or catastrophic event could lead to a business bankruptcy. Businesses have access to a wide range of coverage types to protect them against potential disasters. Here are some that you should know about.

1. Professional Liability
Also known as errors and omissions (E&O), this insurance covers a business against claims arising from negligence, mistakes or failure to perform. There is no one-size-fits-all policy, therefore, it should be crafted for a company’s specific needs.

2. Property
This insurance covers the premises a business owns or leases, and all business personal property like equipment or inventory in the event of a fire, storm or theft. However, some natural disasters like floods and earthquakes are not covered under a standard property policy.

3. Workers’ compensation
For those with employees, workers’ compensation needs to play an important role. If an employee is injured or even killed while working for the company, workers’ compensation will pay out for disability, death benefits, and medical treatment. Even a small slip-and-fall incident of a seemingly low-risk job may cripple a small business.

4. Product liability
If your business manufactures goods for sale on the general market, product liability insurance is for you to consider. Although a business can invest heavily in quality control and ensure that all products are safe, the risk of malfunction and harm can never be removed completely.

5. Business interruption.
If a disaster happens, business operations will likely be interrupted. For those operating online, this isn’t particularly important. If you have a physical store or office, however, this coverage may reimburse for your lost income.

6. Business Vehicle.
Whenever vehicles are involved in a business, there’s always a risk of incidents. While liability coverage is obligatory, the owner can also choose to have collision and comprehensive coverage. Employees using their own vehicles for business will be protected by their own insurance. However, the exception to this rule is where employees deliver goods (or services) for a fee.

Some of the coverages listed above can be a part of a Business Owners Policy (BOP) or can be added as a rider to a general liability policy. Remember, homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. To make sure you are adequately insured talk to your agent who can help you tailor the policy to fit your needs.

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