Why Business Insurance is Important

why is business insurance important

Why Business Insurance is Important

No matter the size of a company, business insurance is a critical element of protection. Business insurance helps to protect companies from a number of losses, such as liability, property damage, and employee injury. When disaster strikes, businesses need the support offered by insurance. In some cases, business insurance can be the key factor that keeps a business afloat in the face of a crisis.

Types of Business Insurance

There are three primary types of business insurance: liability insurance, workers’ compensation insurance, and property insurance. Each of these main types of business insurance has more specific options for coverage, depending on the needs of the business. Business owners should do their research to see which types of business insurance coverage are best. A business insurance agency can also help to provide valuable insight into a business’ insurance needs and the benefits of different types.

Liability Insurance

Liability insurance covers businesses from responsibility in the event that an accident occurs. For example, liability insurance is helpful in the event that a customer slips and becomes injured on the business’ property. Liability insurance would also work to protect a business if a customer becomes injured by a defective product that was manufactured or sold by the business.

Workers’ Compensation

Workers’ compensation is a type of insurance coverage that protects a business’ employees if they become hurt on the job. Workers’ compensation covers injuries that occur on the business’ property, as well as off property if the injury occurred while the employee was “on the clock” performing a job-related task.

Property Insurance

As indicated by the name, property insurance covers any damage that may occur to the business’ location. For example, a flood can result in catastrophic damage to buildings. Without adequate property insurance, a business may be forced to close its doors in the face of overwhelming repair costs and equipment damage.

Legal Requirements

Many states require certain levels of coverage for different types of businesses. Not only does business insurance help to protect business owners and their employees, it helps to keep the business functioning within legal requirements of the state. Business owners who don’t have insurance for their business are urged to speak with an experienced business insurance agency. A business insurance agency in the state will be familiar with the state’s legal requirements for operating a business. The agency will work to thoroughly evaluate the functions and services of a business to ensure that all legal needs are met and all risk areas are covered.

For more info on Business Insurance, call (781) 380-0599

Source: murphyinsgrp.com

Category: Insurance

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