Business Insurance
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When purchasing insurance for your business it’s important to realize there are many different types of policies available. It may be appropriate to buy one or more of these to ensure proper protection.
According to the Small Business Administration, there are five common insurance policies business owners will have to select from:
• General Liability
• Product Liability
• Professional Liability
• Commercial Property
• Home-Based Business
To give you a better understanding of what each policy covers, we have listed them below along with a brief description of each one.
General Liability
This insurance “covers legal hassles due to accident, injuries and claims of negligence,” according to SBA.gov.
Product Liability
This is just what it sounds like. If you manufacture, distribute, retail or wholesale products through your business, this policy protects you if those products have defects that cause injuries.
Professional Liability
This is also commonly known as Errors and Omissions Insurance. Forbes.com explains the policy “provides defense and damages for failure to or improperly rendering professional services.” This is NOT something that is covered under your general liability policy.
Commercial Property
These policies protect business property that is damaged by any of a number of events including vandalism, fire and hail storms.
NOTE: There are two types of property insurance policies: all-risk policies and peril-specific policies. Ask your agent about the difference.
Home-Based Business
Homeowners policies do not cover losses suffered as a result of your home-based business so it is critical to ensure you have this policy if running a business from your private residence.
This list is by no means exhaustive and there are other types of insurance policies you may want to consider if you own your own business including:
• Workers’ Compensation
• Business Interruption Insurance
• Commercial Auto
How much and what type of coverage do you need for your business? We can help you answer all your questions. Call M&M Insurance to set up your appointment today, at 402.932-2910.
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