So many risks, such as fire, theft, and liability, can pose a danger to your business. To make matters worse, replacing lost or destroyed equipment can be extremely expensive. To protect your business from these types of losses, it is important to have a commercial insurance policy. Here are four types of this coverage you need to know.
1. General Liability
If a customer is injured on your property, general liability insurance will protect you against the financial consequences. Individuals can be injured on your premises due to defective equipment, products, or poor maintenance. This policy will cover their medical expenses and any additional costs associated with the injury.
Should you find it necessary to file a lawsuit -- whether you're defending yourself from accusations brought by individuals claiming negligence or you're suing another company for negligence -- general liability insurance will cover your legal expenses. An agent can assist you in selecting the right coverage based on your business' location, size, and activities.
2. Property Damage
Many commercial properties are at risk of theft, which is why most policies have an endorsement that covers property damage. This policy is important if your business has high-value equipment, furniture, or inventory. It offers protection against fire, theft, and natural disasters such as hurricanes or floods. It also covers damage caused when a customer's property gets vandalized in one of your stores.
Most comprehensive policies include property damage coverage. However, if you own several commercial properties, such as storefronts or warehouses, you should consider a separate policy for each location. Additionally, if you work with expensive equipment or art and want protection against theft, it may be a good idea to add this coverage to your policy.
3. Business Interruption
Your business may experience sudden and unexpected interruption due to an emergency, natural disaster, or another event. This may prevent your staff from conducting normal business operations for a period of time. A business interruption policy may help you with the expenses needed to resume business. It will replace lost income and pay extra expenses, such as additional rent on temporary space if yours was rendered unusable by the disaster. If there's damage done to inventory -- either physical property or merchandise -- it will provide reimbursement for that as well.
4. Cyber Liability
Most businesses these days are at risk of being hacked. Cyber liability insurance covers losses that occur because of cyberattacks. It can also be of great help if your company's negligence allows a hack to happen. It will cover legal fees related to both defense and prosecution and compensate customers whose personal information was compromised in the attack.
It's important to have the right commercial insurance in place. This will ensure that you are protected from any financial losses or liabilities caused by certain unexpected events.
Contact a company like United Counties Insurance Group to learn more about commercial insurance.