Basic Insurance Types for Businesses Consider

There is insurance coverage for every potential danger your business could encounter. The cost and coverage extent of insurance differ amongst insurers. You should consult with an insurance professional or broker regarding your unique business risks and available insurance types.

From general liability to universal life insurance, your agency can guide the specific forms of insurance you should consider obtaining.

Table of Contents

General liability insurance

Business owners purchase general liability insurance to cover legal issues arising from accidents, injuries, and allegations of carelessness. These policies protect against payments resulting from personal injury, property damage, medical bills, libel, slander, the cost of defending litigation, settlement bonds, or judgments required throughout the appeals process.

Insurance for commercial property

Property insurance covers everything associated with the loss and damage of firm property due to various occurrences, including fire, smoke, wind and hailstorms, civil disobedience, and vandalism. The expansive definition of “property” includes lost income, business interruption, buildings, computers, company documents, and cash.

There are two fundamental types of property insurance: (1) all-risk plans that cover a wide variety of accidents and dangers other than those stated in the policy; (2) peril-specific policies that only cover losses from the risks indicated in the policy. Fire, flood, crime, and business interruption insurance are peril-specific plans.

All-risk policies often cover the risks encountered by the typical small business, whereas hazard-specific policies are typically obtained in areas with a high risk of danger. Consult with your insurance agent or broker to determine the commercial property insurance most appropriate for your small business.

Product liability insurance

Manufacturers, wholesalers, distributors, and retailers of a product may be held liable for its safety. Product liability insurance protects against monetary damage resulting from a defective product that causes bodily harm or injury. The insurance you should purchase is based on the products you sell or create. A clothing store would have significantly less risk than, for instance, a modest appliance store.

Home-based enterprise Insurance

Contrary to common misconception, homeowner’s insurance plans do not typically cover losses sustained by home-based businesses. Depending on the risks associated with your business, you may add riders to your homeowner’s insurance policy to cover typical commercial risks, such as property damage. Homeowners’ insurance policies cover home-based enterprises to a limited extent; you may need additional policies to protect against other risks, such as general and professional liability.

Insurance against professional liability

Consider professional liability insurance for your business if you offer services (also known as errors and omissions insurance). This liability provision protects your firm against malpractice, errors, and negligence in providing services to your customers. Depending on your occupation, your state government may mandate you to carry such a policy. In several states, physicians are required to acquire malpractice insurance to practice medicine.

Universal Life Insurance

For businesses in Singapore looking for business continuity insurance, you can take advantage of a flexible insurance plan like Universal Life, which offers key person protection, talent retention, and risk management features.

Relocating Business

When relocating your business to a new location, it’s essential to understand prorated rent, as it may apply during transitions. This practice ensures that you’re only charged for the portion of rent corresponding to the time your business occupies the new premises, making it a fair and cost-effective arrangement.