Businesses face many risks and as a result need various types of insurance coverage. Most types of businesses will require a policy that contains liability and property insurance. A business-owners or BOP policy will contain these coverages as well as other coverage options. A business can customize an insurance policy to include many types of coverages including business interruption, and errors and omissions coverage. Laws in most states also require specific business insurance such as workers' compensation.
- Most businesses will require a general liability coverage to protect against injury that is sustained to visitors or customers while on its property. Liability can also include products sold by an insured and operations that have been completed. A general liability will pay for damages up to the limits provided by the policy as well as legal costs in the event that a business is sued. Medical bills of an injured individual are also covered by a general liability policy.
- In addition to coverage for various types of liability a business will also require coverage for business property. This can include damage that occurs to a building as well as personal property that is contained within a building. Coverage is provided for loss that is the result of fire, theft, vandalism, smoke as well as wind and hail. A policy can come in the form of "all-risk" that covers many types of losses or a "specified-loss" policy in which only specified losses are covered.
- A business that provides a service to customers or clients will require professional liability or errors and omissions coverage. This type of coverage against malpractice, negligence, mistake or oversight that can occur while performing a job for a customer. Depending on an individual's profession some types of professional liability insurance may be required in certain states such as malpractice insurance for doctors.
- Workers' compensation insurance is coverage a business purchases to provide for lost income and medical care for an employee who is injured on the job. Benefits are also paid to dependents of an employee who is killed on the job. A workers' compensation policy will pay benefits no matter who was at fault. All states require business with a certain number of employees to purchase a workers' compensation policy unless an exception is granted or provided by state law.
- A business that uses automobiles can have them insured in the same way as an individual's private passenger automobile. A business can obtain a commercial automobile policy in which all vehicles that are owned by a business can be included. Commercial automobile policies provides that same type of collision and comprehensive coverage as well as liability that can occur from the use of a vehicle for business operations.
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