Everything You Need to Know About Business Insurance

Many large and medium-sized entrepreneurs often overlook the importance of protecting their assets, considering it as an unnecessary expense. While a company must plan, identify opportunities, develop new products, and promote its portfolio to be successful, it must also guarantee the protection of its raw materials, merchandise, inventories, infrastructure, machinery, and human resources! There are many risks that a business can face during the development of its activities—for example, intellectual theft, problems in commercial relations, personnel incidents, malicious damage, and others. That’s why having business insurance is essential! Let’s check out why it is so important and the different insurance available for companies!

 

 

Business owner policy

This insurance covers the property against wind, fire, theft, and others—also, civil liability aimed at protecting a person in the company from injuries during their activity. Likewise, the risk of business stoppage is covered, and, in some instances, the coverage includes other accidents.

 

Insurance for damage to property, real estate, or establishment

This insurance type protects the property or physical infrastructure against damage mainly caused by wind or electrical storms, theft, fire, or the weight of snow on the roof. Generally, damage caused by hurricanes, earthquakes, and normal wear and tear is excluded.

 

Insurance for motor vehicles for commercial use of the company

In this case, the company’s vehicles are usually operated within its facilities or outside of them. Thus, some policies cover them outside the company and not content such as merchandise, valuables, and samples. Therefore, it is important to clarify those terms in the contract. Essentially, such assets inside and outside the company should be protected and the contents that it usually transports.

 

Group personal accident insurance.

With this insurance, like the individual accident insurance, the injuries suffered by each worker are covered, especially for accidents that occur in your work environment or while performing activities on behalf of the company or employer. For example, the coverage can cover business or work trips and roads to receive training. Likewise, some companies take out this policy to cover work-related accidents and personal accidents outside the company. Of course, the conditions and other conventions in group insurance vary. Firstly, since it involves many people, the premiums to be paid are different, depending on the risks.

 

Payroll discount insurance

Insurers offer comprehensive insurance for company workers, who collectively can benefit from less expensive premiums. In this way, some companies choose to assume part of that cost, deducting their respective portion from the worker’s payroll. Therefore, the company is responsible for reporting the insurance company’s payment, periodically previously agreed upon. With this modality, insurers offer private companies’ facilities so that their workers can purchase individual insurance. In this way, they will obtain protection for themselves and their family group without incurring large outlays of money.

 

Types of risks that the company must insure

 

These are two types of risks to which companies are exposed, and they must be insured to protect themselves against them. Thus, we have:

  1. The personal risks include the personnel’s accidents during the work and the personnel’s illnesses.
  2. Property: covers damages or losses due to claims that may affect the company’s infrastructure and equipment or machinery.

 

Insurance for people

Labor or “labor” legislation in several countries requires companies to insure their workers with some policies—health, life, and personal accidents. Additionally, companies are free to add other insurances that benefit their employees.

 

Life insurance for workers

As mentioned, some laws indicate that companies take out some insurance for their personnel. Consequently, group life insurance is one of them, establishing a minimum length of service in the organization. However, some private companies take out this insurance with a minimum age of three months as a requirement.

 

Insurance for companies

According to the type of company, there are various insurances in this field, its nature, and complexity. Among the most frequent are the following:

 

Insurance against claims

The company can insure itself to cover the risks of damages produced by vandalism, strikes, earthquakes, fires, and terrorism, similarly, due to rain with flooding, civil commotion, and motor vehicles’ impacts, among others.

 

Insurance against theft or theft

Goods such as fixed assets and office equipment (electronics, computers), and money, are prone to theft or theft. Therefore, the company must insure them to cover these risks.

 

Insurance for transporting goods

Companies usually transport goods and equipment by land, air, sea, lake, or river. Also, the movement of goods locally to fulfill the dispatch to customers is common. Therefore, the company must insure them against thefts, accidents of the conveyor unit, or sinking. Likewise, this insurance can cover the risks in case of import or export of goods.

 

Motor vehicle insurance

Like merchandise and infrastructure, company cars with accessories can be insured against certain risks – for example, traffic accidents, rollovers, theft, fire, natural calamities, and political risks. Also, the coverage may include civil liability to respond to third parties and occupants, based on the policy’s conditions.

 

 

If you’re unsure about the level of coverage required or the types of business insurance you need, call BREVARD INSURANCE & MARKETING today!