A Beginner’s Guide to Business Insurance Terminology
As a business owner, you likely have a set of terms that are used within your specific industry that those outside of your industry may find strange. As such, you may find yourself having to clarify terminology for those with whom you are doing business. In the world of business insurance, the same applies, so here are some terms that you need to know in order to navigate the right options for your company when seeking out insurance options:
Commercial Property Insurance
When you run a business out of any type of commercial property, your company stands the potential for loss in the wake of an unfortunate incident. Everything from fires to floods and tornadoes to vandalism can damage or destroy a commercial property. As such, you’ll want to carry commercial property business insurance to protect your company’s commercial property assets.
General Liability Insurance
Overall, general liability business insurance is a key coverage option to carry whenever you run a business. This type of insurance product protects against lawsuits in the event that a customer is injured on a property that your company owns, leases, or operates. Without general liability business insurance, your company may face thousands, hundreds of thousands, or even millions of dollars in damages in the event of a lawsuit.
Product Liability Insurance
If your company produces any type of product, physical or otherwise, product liability insurance is often a wise investment. Through this type of insurance, your company is covered in the event that one of your products injures a customer, whether physically or through property damage.
Professional Liability Insurance
In providing a service, you typically are expected to sign and fulfill a contract. In some cases, however, a disagreement may arise after a contract has been signed and while the service is ongoing. A client may feel that you have not provided complete details as to what you will or will not do. As a result, a lawsuit may arise, and this is where professional liability insurance can come in handy. Think of professional liability insurance as protection in the event that errors or omissions have occurred when drawing up a contract or when carrying it out.
Workers’ Compensation Insurance
In order to keep your business moving and growing, you need to ensure a safe work environment. Unfortunately, accidents can happen, and when they do, injured workers can lead to serious financial trouble for your company. On top of that, failing to provide workers’ compensation insurance benefits may lead to negative word-of-mouth advertising for your company, or worse, serious legal ramifications. Keep in mind that it is a requirement to keep workers’ compensation insurance in virtually every corner of the United States for businesses that employ more than a single professional.
Poms & Associates Offers Business Insurance Products and Education
Although business insurance terms can seem confusing, the experts at Poms & Associates can help clarify things. If you’d like to learn more about business insurance, its associated terminologies, and our services, please contact us.
Andrew Rusnak is an author who writes on topics that include business insurance and development.