September 16, 2019 | Share
Business Insurance: What Coverage(s) Does Your Company Need?
Whether you are starting a small business, preparing to expand or simply seeking to mitigate your company’s risk exposure, it is worth carefully assessing your company’s insurance needs. Purchasing adequate insurance coverage can provide critical protection in the event of a lawsuit or casualty and being able to rely on insurance coverage when you need it can even help you avoid filing for bankruptcy.
But, while business insurance coverage is important, the topic is also extremely complicated. There are numerous different forms of coverage, and individual companies’ coverage needs will vary greatly. This is true with regard to types and amounts of coverage; and, while some companies will need several different policies, others may find adequate coverage in a single commercial general liability (CGL) or professional liability policy.
7 Examples of Common Business Insurance Policies
While there are many different types of business insurance policies – including many specialized policies that are available to specific types of businesses and that cover particular types of losses – there are some in particular that are applicable to companies of all sizes across a broad spectrum of industries. Examples of these policies include:
- Commercial General Liability (CGL) – CGL insurance provides coverage for claims against your business based on negligence, dangerous property conditions and product defects. This includes most types of personal injury, property damage and premises liability claims.
- Professional Liability (Errors and Omissions) – Professional liability insurance provides coverage for mistakes made by accountants, real estate agents and brokers, architects, engineers, lawyers and other licensed and non-licensed professionals.
- Property Insurance – Similar to home insurance, business property insurance provides coverage for property loss resulting from theft, storms, fires and other events.
- Commercial Auto Insurance – If you have employees who drive within the scope of their employment, then will need to purchase commercial auto insurance. If you are a solo business owner and you drive routinely for business purposes, you may need to consider a commercial auto insurance policy as well.
- Directors and Officers Insurance – Directors and officers insurance provides coverage for decisions and actions taken at the board or executive leadership level that negatively impact the company’s profitability or operations.
- Data Breach Insurance – Although once considered a specialized form of insurance, today many different types of companies are finding it important to purchase data breach insurance coverage.
- Business Interruption Insurance – Business interruption insurance provides coverage for loss of revenue resulting from storms and other casualty events. There are many types of business interruption insurance, and choosing the right policy requires a clear understanding of your company’s risks and needs.
For some companies, an alternative to picking and choosing from the list above will be to purchase what is known as a “business owner’s policy,” or “BOP.” A BOP policy combines many, if not all, of the types of coverage listed above (potentially with other forms of coverage included as well), typically at a discounted “package” rate.
Business Lawyers for Insurance Claims and Disputes in Fort Lauderdale, FL
Our business lawyers help companies in Fort Lauderdale and throughout Florida make smart decisions about their insurance needs. We also provide skilled and aggressive legal representation for insurance claims and litigation. To speak with one of our attorneys in confidence, call us at 954-767-6333 or tell us how to reach you online today.
Categories: Business Law