Running your own business can be incredibly rewarding, but it also comes with a certain level of risk. To protect your personal finances from any problems in your company, you'll need to have business insurance in place. This protection can give you peace of mind that your home, savings, and other possessions can't be taken away to cover business debts or other expenses. Here's a look at some of the most common components of business insurance to get you started on what your policy might need.
General Liability Coverage
This is the most general level of coverage and can apply to a variety of incidents — most notably, injuries that occur on your commercial property or accidents resulting from the use of your products or services. In the event that a customer, supplier, or other individual chooses to sue your company, your liability coverage can help cover your legal fees and any settlement you are required to pay.
Commercial Property and Auto Coverage
These two coverage components function similarly to typical homeowners and auto insurance policies, except that they are geared toward properties and vehicles used for business purposes or vehicles that exceed your state’s weight rating and can’t be classified as standard passenger vehicles. Real property and vehicles are expensive assets for a business, so it is important to protect them and your company financially in case of any mishaps.
Workers' Compensation Insurance
This is one of the most important types of coverage for a business. Workers' compensation insurance, often called workers' comp, comes into play if an employee is injured in the course of performing their job duties. Your coverage can pay for their medical expenses, as well as their wages while in recovery and any additional settlement they might be eligible to receive. Most employees will expect your company to have this type of coverage, so you definitely shouldn't skimp in this area.
Commercial Umbrella Coverage
Umbrella coverage provides an added layer of protection beyond any other coverage you already have in place. This way, if something happens that isn't covered under your other policies, or if your policy limit isn't enough to cover a particular incident, you'll have added coverage to fill in the gaps. Umbrella coverage will only come into play when you have exhausted your other insurance options.
Protect Your Business with Robust Coverage
Get in touch with the Onstad's Insurance Agency team today to design a custom insurance policy for your business.