The ABCs of Business Insurance Coverage

No matter what business you run, it’s essential to have the right insurance coverage in place. Not only will this protect your business from financial loss in an accident or lawsuit, but it will also give you peace of mind knowing that you’re prepared for anything. But with so many different types of business insurance available, it can be challenging to know where to start. To help you understand it all, here are the ABCs of business insurance coverage.

1. What is Business Insurance?

Business insurance is a type of insurance that businesses purchase to protect themselves from financial losses stemming from risks such as accidents, natural disasters, theft, and legal liabilities. In other words, it’s a safety net that businesses can fall back on if something goes wrong. 

2. Types of Business Insurance Coverage

Many different types of business insurance are available, each with its specific purpose. The most common types of coverage are property insurance, liability insurance, workers’ compensation insurance, and professional liability insurance. 

• Property Insurance: Property insurance covers the physical assets of your business if they are damaged or destroyed by a covered peril (e.g., fire, windstorm, theft). 
• Liability Insurance: The policy protects your business when you get sued for damages arising from injuries or property damage resulting from your business operations. 
• Workers’ Compensation Insurance: This policy covers the medical expenses and lost wages of employees who are injured on the job. In most states, businesses must carry workers’ compensation insurance if they have employees. 
• Professional Liability Insurance: Professional liability insurance protects your business from being sued for negligence, errors, and omissions. This type of coverage is significant for companies that provide professional services (e.g., accounting, consulting, engineering). 

3. How to Choose the Right Business Insurance Coverage

The best way to determine which type(s) of business insurance coverage you need is to speak with an insurance agent or broker who can assess your unique risks and recommend the right policies for your business. You should also review your insurance needs regularly (at least once annually) to ensure that your coverage is still adequate. 

Get Business Insurance in Astoria, OR

At Linda Dugan Insurance, we understand the importance of having the right business insurance in place. We offer a wide range of business insurance policies, and our experienced agents will work with you to find the coverage that best meets your needs. Contact us today to get started.