4 main types of insurance for a business

4 main types of insurance for a business

Even when trying to predict everything, there is no such thing as zero risk. To insure your business or renew its coverage, you must examine its activities and the risks associated with them. Here are four major types of business insurance to guide your thinking.

Corporate liability insurance
This type of insurance is designed to protect your business in the event of accidental damage to others. This insurance can cover:
bodily injury;
material damage;
the costs of your defense in the event of a lawsuit.
More specifically, the company's civil liability cover concerns what affects the framework of its operation (activities, places, works and products).
An untoward event, such as a serious injury during a visit to your business premises, could lead to a lawsuit and quickly eat away at your emergency reserves. This insurance could therefore significantly reduce the financial consequences for your business.
Depending on the nature of your company, other protections may be useful such as directors 'and officers' liability insurance as well as professional indemnity.
Commercial vehicle insurance
This type of coverage is specially designed for vehicles used in commercial activities. Basic protections can cover:
civil liability;
the risk of collision and overturning;
fire, theft and vandalism;
other risks such as:
broken glass;
hail;
the rising waters.
Here are some categories of vehicles and uses to consider:
cars used to visit your customers or your places of supply;
vehicles for delivering or transporting goods;
trucks and trailers.
To the extent that these vehicles actively help your business run smoothly, their loss could have a direct impact on your service delivery or your income. By choosing the right covers, you can plan for a return to normal more quickly.
Commercial property insurance
Whether you are a tenant or the owner of your place of business, this type of insurance can protect your business against many risks including fire, theft and vandalism. The following may in particular be covered:
the goods;
materials and equipment;
the buildings.
Commercial property insurance aims, among other things, to help you:
counter a loss of rent resulting from a covered loss;
replace accidentally damaged equipment;
protect your windows and signs (if you have a storefront);
protect your site and your property on it (for general and specialized contractors).
The loss of use of these assets could significantly affect the continuity of your business and the financial vitality of your business, which is why the right protections could help you avoid worries.
Cyber ​​risk insurance
This type of insurance may be relevant in helping you protect your business and your customers against the consequences of cyber threats. Different events can be covered such as:
computer hacking;
damage to your operating systems;
virus corruption of your software.
For example, in the event of a computer attack, your business may need the support of a public relations firm to assess the appropriate measures to take. This insurance could also cover the reimbursement of certain costs associated with restoring your systems in order to reduce the financial repercussions of such an event.