Reading: Business Insurance
Business
Insurance Types
•Property
Insurance
•Product
Liability Insurance
•Professional
Liability Insurance
•Commercial
Auto Insurance
•Trip
Business Insurance
•Workers
Compensation Insurance
•Casualty
Insurance
•Health
Insurance
•Business
Interruption Insurance
Property
Insurance
•Commercial
property insurance protects commercial property from such perils as fire, theft
and natural disaster. This type of insurance is carried by a variety of
businesses, including manufacturers, retailers, service-oriented businesses and
not-for-profit organizations.
Product
Liability
•Product
liability insurance protects the business from claims related to the
manufacture or sale of products, food, medicines or other goods to the public.
It covers the manufacturer’s or seller’s liability for losses or injuries to a
buyer, user, or bystander caused by a defect or malfunction of the product,
and, in some instances, a defective design or a failure to warn. When it is
part of a commercial liability policy the coverage is sometimes called
products-completed operations coverage.
Also
called professional indemnity insurance (PII) but more commonly known as errors
& omissions (E&O) in the US, is a form of liability insurance that
helps protect professional advice- and service providing individuals and
companies from bearing the full cost of defending against negligence claim made
by a client, and damages awarded in such a civil lawsuit.
Commercial
Auto
•Purchased
for cars, trucks, motorcycles, and other road vehicles. Its primary use is to
provide financial protection against physical damage and/or bodily injury
resulting from traffic collisions and against liability that could also arise
there from the specific terms of vehicle insurance varies by law from state to
state or region to region. To a lesser degree vehicle insurance may
additionally offer financial protection against theft of the vehicle and
possibly damage to the vehicle, sustained from things other than traffic
collisions.
Business
Travel
•Intended
to cover medical expenses, trip cancellation, lost luggage, flight accident and
other losses incurred while traveling, either internationally or within one’s
own country. It can usually be arranged at the time of the booking of a trip to
cover exactly the duration of that trip, or a “multi-trip” policy can cover an
unlimited number of trips within a set time frame. Some policies offer lower
and higher medical-expense options; the higher ones are chiefly for countries
that have extremely high medical costs, such as the USA.
Workers
Compensation
•Provides
medical and partial wage replacement benefits to employees injured as a result
of work-related activity. This coverage also provides the employer protection
from the threat of a civil lawsuit by an employee with a work-related injury.
This coverage is provided by a workers’ compensation policy, secured by the
employer.
Casualty
/ Liability Insurance
•Liability
insurance protects your business from lawsuits – both the legal costs and the
settlement or judgement costs, if any. General liability covers injuries and
damages that occur in the course of doing business. Casualty insurance focuses
on injuries on your business premises and crimes against it. It includes issues
from terrorism to fraud to burglary to identity theft to the misdirected
softball that goes through the store window. Since casualty incidents overlap
with some other types of insurance, this coverage may be folded into other
types of policies. Accidents may be covered with commercial general liability.
Group
Health Insurance
•Employer-sponsored
health insurance is paid for by businesses on behalf of their employees as part
of an employee benefit package. Most private (non-government) health coverage
in the US is employment based. Nearly all large employers in America offer group
health insurance to their employees. The typical large-employer PPO plan is
typically more generous than either Medicare or the Federal Employees Health
Benefits Program Standard Option.
Insurance
Laws
•Businesses
with employees are required by law to pay for certain types of insurance:
workers comp insurance, and, depending on where the business is located,
disability insurance.
•Worker’s
compensation insurance is required for any non-construction business employing
four or more people and any construction business with at least one employee.
Commercial automobile coverage is required for businesses that own, lease or
operate a motor vehicle.
Last modified: Tuesday, August 14, 2018, 8:31 AM