Why do I need business insurance for my small business?
Commercial Business Insurance provides comprehensive protection for the business owner and his/her employees in the event a claim is placed against the business. Your business may have many assets such as vehicles, offices and equipment as well as employees or partners, and most importantly, yourself. To protect yourself and your business in the event you are sued, a business liability insurance policy can protect you. A business insurance policy can also protect you if you are in a partnership with others and one of your partners dies or becomes disabled, an insurance policy can help you in an emergency situation should cash flow become tight.
Businesses have very different needs when it comes to commercial liability insurance. What may be good protection for one business, may not make sense for another. There are different types of insurance coverage for business owners. For example, some business owners opt for commercial property insurance, while others purchase general liability insurance, and some purchase crime insurance. Many businesses desire to have all of these types of coverage so they may opt for what is called a business owners policy. Some business owners prefer to purchase industry specific insurance coverage as opposed to a general business insurance policy.
At Pegasus Insurance we coach business owners in selecting the right type of insurance coverage to meet their needs. Central Florida is growing with small business owners daily. We work with many of them to assess their risks and reduce their potential losses.
Types of Commercial Insurance
There are four basic types of commercial insurance:
Property Insurance: Protects buildings, furniture, vehicles, inventory, and other property related to the business. Commercial property insurance covers everything related to loss and damage to company property due to different reasons, for example, fire, smoke, windstorms and hail, civil disobedience and vandalism.
Liability Insurance : Liability protects against matters regarding rental misfortunes, contracts, accidents, professional negligence, and other responsibilities related to the business. Business owners buy general liability insurance that covers legal problems due to accidents, injuries and negligence claims. These policies provide protection against disbursements of money related to bodily injury, property damage, medical expenses, defamation, slander and the costs of defending against claims, and obligations arising from arbitration awards or bail bond appeals.
You can buy property insurance and liability insurance separately or together. Typically buying them together is cheaper than buying them separately. Each policy is different, so before buying it you should know exactly what kind of risks your policy protects.
Business Interruption Insurance – If you have to temporarily close your business because of a fire or other disaster, this insurance will cover your loss of income until your business resumes.
Vehicle Damage Insurance – You will have to insure all vehicles in your business. If you use personal vehicles for commercial purposes, do not forget to notify your insurance company.
Commercial Insurance Policies May Not Include…
There are some types of coverage that commercial insurance agencies may not offer.
For example, many policies do not cover:
- Contract Violation Lawsuits.
- Unfair Farewell Litigation.
- Sexual Harassment Litigation.
- Other lawsuits related to employment.
Types of businesses covered by the business owners program:
- Contractors such as electricians, landscapers, plumbers, masons, HVAC professionals, painters and domestic repair professionals
- Retail businesses such as beauty salons / manicures, gift shops, florists, barbers, photography studios, appliance stores and computer stores.
- Apartments and condominiums.
- Offices, including accountants / bookkeepers, advertising, dentists, lawyers, doctors, real estate agents, travel agencies
- Restaurants: bistros, cafes, patisseries, family restaurants and elegant restaurants and many more.