Whether you’re a large corporation or a small business, having the right insurance policies in place is essential to allow for smooth operations. With the myriad of policies available, determining which are right for your company can be daunting. Here’s an overview of the different types of business insurance policies that are most commonly needed. Of course, your insurance portfolio should be tailored to your business. Talk with a qualified insurance broker (HINT: we’re an insurance brokerage firm) to get the commercial insurance your business needs.
General Liability Insurance
If someone sues a business (or a sole proprietor), general liability insurance is what is needed to protect the assets of the business by handling the legal hassles of lawsuits from injuries, accidents or neglect.
Excess Liability Insurance / Umbrella Insurance
General liability insurance policies are general, meaning they don’t necessarily cover the specifics risks that a business may have. That’s where an excess liability insurance policy (also known as umbrella insurance) comes into play. This policy will extend the umbrella of protection to include specific risks that are not covered by the general insurance policy and may also increase the general policies payout limits.
You guessed it. Property insurance policies cover property. But it isn’t limited to just land; it also includes business property such as computers, inventory, equipment, and tools. The most obvious reason to have a commercial property insurance policy is to protect the business in case of fire, vandalism, or theft. Be aware that earthquakes and floods are not normally covered by property insurance policies and often require their own separate policies.
Business Interruption Insurance
Business Interruption Insurance, also known as Business Income Insurance, covers the loss of income due to a disaster. If your business cannot operate if the unthinkable happens, then Business Interruption Insurance will be essential. However, if your business can easily operate off site or from home without any essential equipment from the business location, then it might not be necessary. Business Interruption Insurance is usually an add-on/rider to a Property Insurance policy, or it often comes bundled as a Business Owner’s Policy.
Commercial Auto Insurance
If employees are ever driving a company vehicle or their own personal vehicle for work reasons (even sending an employee out to go pick up lunch for everyone or grabbing office supplies), then a commercial auto insurance policy is necessary. If the company owns the vehicles, then you’ll want to get a commercial auto insurance policy. If the employees own the vehicles, then you’ll want to get a non-owned liability insurance policy.
Those are the top 5 insurance policies that a business will probably need, but the list doesn’t end there. There are policies available for virtually any possible risk. Of course, you should always talk to your insurance broker to make sure your company has the right insurance package. If you live in Sacramento or anywhere throughout California, then you can fill out our FREE online Business Insurance Request Form.
Other common business insurance policies:
- Auto Repair Shop / Garage Liability Insurance
- Business Continuation Insurance (Life insurance for essential company members)
- Commercial Earthquake Insurance
- Commercial Property and Apartments
- Construction Insurance
- Contractor License Bonds
- Cyber Liability / Data Security Insurance
- Directors & Officers Liability Insurance
- Employment Practices Liability Insurance (EPLI)
- Employee and Group Benefits
- Fidelity & Fiduciary Insurance
- Pollution Coverage
- Professional Liability Insurance / Errors & Omissions
- Restaurant Insurance
- Risk Management
- Transportation Insurance
- Workers Compensation Insurance
- Wrap-Up Coverage / OCIP / CCIP