Different Types of Business Insurance Policies
Business Insurance is a generic term that encompasses various types of insurance policies, which are as follows:
Property Insurance: This is one type of business insurance policy that compensates you for the loss of your business property and assets. However, the cause of loss must be among those specified in the Property Insurance policy. For example, if your Property Insurance policy covers losses against cyclone and earthquake then you cannot claim for the loss incurred to your business property due to a fire.
Property Insurance also covers the losses to properties of other owners that were being used by your business at the time of loss. In addition, Property Insurance allows you to own, lease, or rent the insured business property.
Casualty Insurance: Compensates you for any loss that occurred to your business. This type of business insurance policy is often packaged with Property Insurance, and the collective insurance can be most beneficial to your business.
Liability Insurance: Shields your business when a case is filed against you for neglecting your business operations or employees.
Commercial Auto Insurance: Compensates you for the losses incurred when your commercial vehicles meet with accidents. It may also compensate the other parties that were involved in the accidents.
Workers’ Compensation and State Specific Insurance for Employee Injuries: Compensates your employees for the injuries sustained during work. The Workers’ Compensation system prevents your workers from suing you for injuries sustained during work. However, it binds you to pay the medical bills of the injured workers. In addition, some states may make it mandatory for a business to have specific insurance policies for workers. Examples of such policies include Stop-gap Coverage and Scaffolding Liability.
Business Interruption Insurance: Compensates you for the losses incurred when your business operation is halted due to unavoidable circumstances, such as machine malfunctioning. The Property Insurance or Casualty Insurance policies might bear the machine repair charges, but such types of business insurance policies will not bear the loss due to lack of production.
Health Insurance: This is another type of a business insurance policy that provides medical benefits to you and your employees and thereby provides a competitive edge to your business.
Life and Disability Insurance: Shields your business in case of bereavement or disability of your stakeholders by empowering you to buy the share of the deceased.
Other Insurance or “Scripted” Policies: Refers to the policies that have been tailored to suit the requirements of a particular business or person. For example, some athletes may get their legs insured.
All the above types of business insurance policies are subject to risks, which are clearly specified in the policy document. The insurance policies also allow you to add or remove the risks covered, and subsequently manipulate the premium.