Carrying the right insurance policies with the right coverage limits shields businesses from being financially wiped out due to underinsured or uninsured business losses. Within 10 years, about 40% of all American businesses file a claim with their insurer. This means that there is a good chance that your business insurance will be of benefit at some point. Moreover, the cost of liability for businesses is on the rise. From 2016 to 2018, for example, the average cost of commercial tort liability rose by 14%. While this growth is significant, the increase in liability costs was even greater for small businesses, according to the U.S. Chamber Institute for Legal Reform.
Types of Business Insurance Policies You Should Consider
General liability insurance protects your business against property damage and bodily injury claims. It can also cover slander and libel claims. For instance, if a customer visiting your store slips and falls, general liability insurance can cover their medical expenses. If you don’t have this coverage, you’ll have to pay for the medical expenses out of your own pocket.
Commercial Property Insurance
Commercial property insurance covers your business premises and some of your other properties such as equipment, tools, furniture, and inventory in the event of a covered risk such as theft, storm, or fire. However, this policy doesn’t cover mass-destruction events such as earthquakes and floods. If you operate in an area that’s prone to these perils, you should have a conversation with your insurer on how to have the issues covered.
Business Income Insurance
Business income insurance covers income lost due to wind damage, theft, fire, or any other covered risk. If you can’t manufacture products, makes sales calls, or work in your office due to a fire incident, this coverage can compensate you for the lost revenue.
Workers’ compensation insurance covers liabilities claims relating to work-related illness or injury. This coverage will pay for the expenses incurred if your employees sustain injuries or get ill due to their work-related responsibilities. These include:
Lost wages if an employee is forced to take time off to recuperate
Commercial Auto Insurance
This policy covers liability claims relating to auto accidents that happen while you or your employees are driving a business vehicle. For instance, if an employee is at fault for an accident that happens while driving a business van to a client’s premises, your commercial auto insurance can pay for the resulting damages.
If your business entails providing professional services, professional liability insurance will cover negligence claims that arise as a result of your/ your employees’ failure to perform. Also known as Errors and Omissions (E&O) Insurance, this policy will cover you in the event of actual or alleged errors and omissions made, such as giving incorrect professional advice or failure to fulfill your professional commitment.
Data Breach Insurance
Many businesses store their employees’ and clients’ personal information in their IT systems. Data breach insurance protects your business in the event of a cyber-attack that leads to cybercriminals accessing your clients’ or employees’ personal information. It covers the expenses involved in:
Notifying the affected customers and employees
Offering credit monitoring services to the data breach victims
Getting the services of a public relations company
Business Insurance in Denver, Colorado
Per U.S. Small Business Administration: Office of Advocacy, small businesses make up more than 99% of Colorado’s business ecosystem, employing more than half of the employees in the state. With the recent technical boom, several small businesses have emerged, making it extremely essential to protect your business operations with the right combination of different types of business insurance policies.
At Spotlight Insurance Agency, we focus on our client’s unique needs to provide a high-touch and high-value customer experience. With our service-oriented approach, we are adept at creating comprehensive business insurance policies to address your unique risk exposures and provide complete coverage. Contact our experts today to get started!