Types of Coverages
Property insurance protects your business’s buildings and the personal contents inside of them. Many products/carriers offer additional coverage for loss of rent, business interruption, inflation guards, etc. Even if you do not own the building you occupy, you should purchase a property insurance policy to insure your personal contents in the building. Most property policies will have deductibles, coinsurance, and a total insurable value.
General liability insurance defends your business in the case of a lawsuit. Should you face a lawsuit, your general liability policy commits to cover defense costs and settlements up to the limit of your policy. General liability limits are usually split up into a premises limit, products/completed operations limit, and an aggregate limit. The aggregate limit is the most that the policy will pay out for all claims combined. The two sub-limits (premises and products/completed operations) are the most that the policy will pay out for individual claims (or individual occurrences). Most liability policies will have additional coverages for premises rented to you, medical payments, and some hired/non-owned auto liability.
A Business Owner’s Policy offers several insurance products rolled into one, generally targeted to small and mid-size businesses. Business owner’s insurance typically includes property, business interruption, and liability insurance. Not all businesses qualify for Business Owner’s Policies. Eligibility requirements differ among carriers. Insurance providers carriers may have requirements regarding business location, the size of the location, revenue, and class of business.
Workers’ Compensation coverage provides a medical and lost wage benefit to employees who are injured on the job and relieves the employer of the risk of an employee lawsuit. If your employee is injured on the job, workers’ compensation insurance pays for medical expenses and lost wages until the employee is reimbursed for their loss.
Auto insurance offers coverage for both automobile liability and property damage. The automobile liability protects a company from any lawsuit stemming from the company’s use of a car. As with general liability, defense costs are not included in the policy limit and are not capped by the policy. Property damage protects a company from any damage to the company’s auto(s) subject to a deductible. Overall, the commercial auto policy combines liability insurance and property insurance regarding the company’s use of automobiles.
Business owners face a multitude of different insurance risks, and it is the job of our specialized agents to consult on the coverages appropriate for your business. Please reach out to National Advisors Group today, to discuss your business needs and our ability to meet them.