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MAY
10
2021

What Type of Business Insurance is Right For You?

What Type of Business Insurance is Right For You?

Businesses make the world go round. We rely on companies to give us essential products and services or morale-boosting experiences. In return, insurance agencies provide businesses with the support they need to keep going. As a business owner, you may be wondering, “What kind of business insurance do I need?” Since insurance plans are subjective and complex, we recommend discussing your needs with a qualified Nickerson Insurance agent. In the meantime, here’s a general overview of the different types of business insurance we provide:

Liability Insurance

The basic premise behind liability insurance is to protect you and your company against legal issues that may arise from an expected incident. For example, if a customer suffers an injury at your place of business, they may choose to sue you. Liability insurance would cover some of the legal and medical expenses involved in this case. Since claims and lawsuits can cost thousands or even millions of dollars, liability insurance could prevent a financial crisis. There are 3 main types of liability insurance:

General Liability

We recommend all business owners purchase a general liability policy. These plans cover a wide variety of circumstances and are suitable for most industries. General liability insurance will help you reimburse a client for property damage, physical and emotional injuries or medical expenses. It will also help you recover legal defence costs if you decide to fight a case.

Employment Practices Liability

Even with the most thorough hiring process, you still may encounter a bad egg from time to time. Employment practices liability insurance can protect your business if your employee starts trouble. When you encounter an employment discrimation, wrongful termination, or sexual harassment lawsuit, this type of policy will help you recover losses and legal fees.

Professional Liability

Does your company provide a service or product? You should consider professional liability insurance. If your product malfunctions or your service results in harm, you may find yourself with a negligence claim or civil lawsuit. A professional liability policy can offer financial security under these circumstances. Malpractice insurance is one form of professional liability, providing physicians with protection from the legal repercussions of medical mistakes.

Errors and Omissions

Does your company provide professional information, advice, or guidance? By law, a client can sue you for false information, especially if it resulted in property damage, emotional distress, or bodily harm. Even if their claims are wrong or misguided, you’ll still need errors and omissions insurance to cover legal fees.

Property Insurance

Disaster can strike at any moment, leaving your property vulnerable to damage and loss. Property insurance will help your business recover from bugarly, fires, water damage, vandalism, and accidents. The type of property insurance policy you need depends on your business situation.

Commercial Property

If your business operates at a commercial property (such as a storefront or an apartment complex), you’ll need commercial property insurance to cover potential damages. This includes damages to the physical building as well as business-owned equipment, such as computers.

Homeowners Insurance

If you run your business out of your home, you’ll need to update your homeowners insurance plan to include business property coverage.

Employee Protection Insurance

The above policies protect you and your business, but they don’t cover your employees. Since your employees are an asset of the company, it’s wise to purchase insurance policies that cover them during an unexpected incident. In many states, some of these are even required by law:

Workers Compensation

Workers comp will cover most expenses related to an on-the-job injury. This type of insurance benefits the employee but also protects the employer. Without workers compensation insurance, the employee can sue you for damages, medical expenses, and loss of wages.

Group Life Insurance

If your employee passes away, life insurance will cover funeral costs and provide surviving family members with financial support. Group life insurance plans give employees access to lower premiums. Some employers even choose to cover part or all of a life insurance policy. This benefit can be used as an incentive during the hiring process.

Auto Insurance

Travel and transport is an inevitable part of business for many industries. Make sure your vehicles are covered in the event of an accident or unexpected event. 

Business Auto Insurance

Business auto insurance covers any business-owned vehicles, including cars, trucks, vans, and buses. Just like personal car insurance, there are a variety of policy options depending on your specific vehicle and needs.

Transit Insurance

If your business ships or exports products, transit insurance will protect those assets during their travels. If the shipments get lost or arrive damaged, this policy will reimburse you for any resulting financial losses.

Insurance Bundles

If your business requires multiple insurance policies, a bundle or package can make things simpler and cheaper. 

Business Owners Policy

A business owners policy (known as a BOP) is suitable for most small businesses. It typically comprises property insurance, business income protection, and general liability. It may also include an extra expense policy to help your business get back on its feet after a recovered loss.

Commercial Package Policy

A commercial package plan allows you to bundle policies of your choosing. If a BOP isn’t extensive enough for your business, this could be the best option. 

Nickerson Will Determine Which Types of Business Insurance Policies are Right For You

Your company is your livelihood and your legacy. It’s important to protect it. At Nickerson Insurance Services, Inc., we want to make sure you’re covered when the unexpected occurs. Since 1961, we have provided comprehensive business insurance policies to California entrepreneurs, including liability, property, auto, and business owners insurance. Our agents will review your case and match you to the best policies for your needs and budget. Request a quote today.

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