Why Business Insurance is Necessary

Businesses can choose from a variety of types of insurance. Some are required, and others are optional. However, even the optional types should be considered to protect your investment. One problem could cause the loss of your entire business if you are not protected.

Liability Insurance

If a lawsuit is filed against your business, you could lose everything. Suppose a client is injured while visiting your property. Liability insurance could cover the cost of their medical bills. With the rising cost of medical care, paying for this out-of-pocket could severely impact your business. If the injured party decides to sue, insurance will cover your legal fees. Should the person win the lawsuit, the insurance also pays the amount awarded.

Business Owners Policy

A Business Owners Policy (BOP) can help if your business has to close due to flooding or another natural disaster. Although property and casualty insurance will cover the damage from things like lightning fires, hurricanes, and tornadoes, your business may be damaged to the point that you cannot reopen for several months. Not only will you suffer a loss of income, but your employees will as well. Some employers choose to include employee pay coverage in the BOP policy.

Always read the policies you are considering. Some things may not be covered. For example, when you purchase property and casualty insurance, it generally covers damage caused by natural disasters. It may not cover everything, and these events will be specifically mentioned in the policy. An example of a company that provides business insurance orlando fl is Florida Insurance Group.

Other Types

There are other types of insurance that may be required by law. Worker’s compensation is one that protects employees if they are injured on the job. This insurance will cover medical expenses and lost wages due to the injury. Some states only require worker’s compensation insurance if the business employs a certain number of people. If your business does not have this insurance, you could be sued for damages incurred by the employee.