Types of Business Insurance
example of product liability insurance
A clothing store would have far less risk than a small appliance store, for example.
Commercial Property Insurance
Property insurance policies come in two basic forms: (1) all-risk policies covering a wide-range of incidents and perils except those noted in the policy; (2) peril-specific policies that cover losses from only those perils listed in the policy. All-risk policies generally cover risks faced by the average small business, while peril-specific policies are usually purchased when there is high risk of peril in a certain area.
Professional Liability Insurance
Business owners providing services should consider having professional liability insurance (also known as errors and omissions insurance). Depending on your profession, you may be required by your state government to carry such a policy.
General Liability insurance
Business owners purchase general liability insurance to cover legal hassles due to accident, injuries and claims of negligence.
Product Liability Insurance
Companies that manufacture, wholesale, distribute, and retail a product may be liable for its safety. The amount of insurance you should purchase depends on the products you sell or manufacture.
Home-Based Business Insurance
Contrary to popular belief, homeowners' insurance policies do not generally cover home-based business losses. However, homeowners' policies only go so far in covering home-based businesses and you may need to purchase additional policies to cover other risks, such as general and professional liability.
what does the home-based business protect
Depending on risks to your business, you may add riders to your homeowners' policy to cover normal business risks such as property damage.
example of commercial property insurance
Examples of peril-specific policies include fire, flood, crime and business interruption insurance. All-risk policies generally cover risks faced by the average small business, while peril-specific policies are usually purchased when there is high risk of peril in a certain area. Consult your insurance agent or broker about the type of business property insurance best suited for your small business.
example of professional liability insurance
For example, physicians are required to purchase malpractice insurance as a condition of practicing in certain states.
what does the product liability protect?
Product liability insurance protects against financial loss as a result of a defect product that causes injury or bodily harm.
what does the commercial property protect
Property insurance covers everything related to the loss and damage of company property due to a wide-variety of events such as fire, smoke, wind and hailstorms, civil disobedience and vandalism.
what does the general liability protect?
They protect against payments as the result of bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure.
what does the professional liability protect?
This type of liability coverage protects your business against malpractice, errors, and negligence in provision of services to your customers.