Three business insurance
Three business insurance is a form of liability insurance that covers you when
someone makes a claim against you for damages. Auto insurance is a typical
illustration of this, as it will compensate a motorist wounded in an
accident that you caused. Property damage insurance is another popular
kind of third-party insurance.
What is not covered by these policies?
Certain risks are excluded from normal insurance and may require an individual
insurance program. For example, certain natural disasters such as earthquakes or
floods are usually excluded because they cause enormous damage in a relatively
small geographic area and it is not financially feasible for insurance companies to
offer standard coverage for these types of events. Infectious diseases are also
excluded because their effects are unpredictable and can potentially affect the entire
country.
If you want to protect yourself against these dangers, you should speak to your
insurance broker so they can advise you on taking out specialist cover. Some risks
cannot be insured at all. Most types of business insurance cannot insure commercial
property against damage caused by war, disaster, or government seizure
The three main areas of business insurance
From sole proprietorships to large corporations, all businesses are exposed to
operational risks that can result in significant personal and financial losses. With so
many different types of insurance to choose from, it can be overwhelming to know
which insurance coverage is best for your business. However, it is important to
know that insurance can protect your business from costly damage and enable you to
recover financially from operational setbacks.
What is business insurance?
Business insurance is not a single policy, but a combination of policies that
companies choose to protect their business from many risks. Three main types of
insurance that many businesses choose: commercial liability insurance, commercial
property insurance, and business income (interruption) insurance.
Commercial liability insurance
General liability insurance generally protects your business from claims related to
personal injury and property damage resulting from your products, services or
activities. Additionally, this coverage can help cover medical expenses and legal
fees resulting from bodily injury or property damage your business faces.
Advertising damages arising from alleged misinformation, copyright infringement
or defamation of your business are also covered by general liability insurance.
Generally, general liability insurance consists of three
coverage components:
• General liability insurance can cover you if a non-employee is injured on your
property. For example, if someone sues your business because they tripped and fell
on your property, general liability insurance can help cover those costs.
• Product liability covers you if your company’s product or service results in
personal injury or damage to a consumer’s personal property.
• Personal injury insurance provides some protection against third-party claims for
physical, financial, or psychological injuries caused by your business.
Insurance for commercial properties
Commercial property insurance covers loss or damage to your structure,
leased or owned equipment, and other property in the case of a
catastrophic incident such as a fire, explosion, broken pipe, storm, or
theft. Commercial property insurance is offered at replacement cost or actual cash
value. Let’s assume your insurance covers the replacement costs. In this case, it may
bear the costs of replacing or repairing the damaged item with materials of the same
type and quality without deduction for the reduction in value. On the other hand, the
actual cash value covers the cost of repairing or replacing the damaged property,
minus any diminution in value.
Interruption insurance
If your business has to close temporarily after a covered accident, this coverage can
help you pay your business bills. Business interruption insurance gives you access to
your company’s assets when you need them most. A little disruption in
operations may be extremely expensive for your company and lead to
permanent closure or severe harm to your image. And this is where
interruption insurance can help. This coverage protects against common disruptions,
including natural disasters, equipment damage and vandalism.
Other insurances that provide protection
The type and size of your business, its location, and its level of risk may affect
whether you want to purchase additional insurance to protect your business and its
assets. Lupton & Luce Inc. helps Riverhead and Long Island businesses recover
from unexpected business insurance issues.
These other insurance coverage’s can be helpful in protecting your business from
unforeseen risks and liabilities.
They include:
• Commercial Auto Insurance: This insurance coverage can help protect against the
financial consequences of damages and liability claims, allowing your business to
cover the costs of accidents or other vehicle risks.
• Guarantees – If you are contractually bound to specific customers, these guarantees
ensure that you can repay them if you are unable to meet your commitments.
• Workers’ compensation insurance: This coverage can provide your employees with
wage compensation during recovery if they suffer a work-related injury or illness.
In addition to these policies, specific policies depending on your products or services
provide additional protection for your business. These include:
• Cyber liability insurance
• Employment insurance
• Inland waterways insurance
• Liability insurance for completed products/work
• Umbrella liability insurance
We can determine what insurance your business needs to provide the best protection.
Because of your business type and location, you may need to purchase certain types
of insurance. For example, many states require all businesses with employees to
carry workers’ compensation insurance, and some states have specific business
insurance laws and may require professional liability insurance for accountants, for
example.
Lupton & Luce Inc. can help you get the insurance coverage you need to reduce your
risk and comply with your state’s regulations.
Risk of business interruption
Many unexpected scenarios, such as a fire or natural disaster, can force you to
temporarily suspend your business. Even if you had enough money to cover the
damage yourself, it would probably take some time to get back on track. Could you
survive if you had to close your business for a month or even a few months? Many
businesses never reopen after such scenarios. Having the right insurance to cover
potential business losses due to outages is therefore an important step in protecting
your business in such unexpected situations.
Cyber risks
Cybercriminals are increasingly targeting small businesses because they store
valuable customer information and often don’t have the budget to protect that
information that larger companies can. A cyber attack or data breach can cause
financial loss and seriously damage your reputation.
Types of business insurance you need
Different companies have different insurance needs. There are many factors that
determine the need and cost of your insurance. When deciding what coverage to get,
consider the following:
• The nature of your product/service
• The risk profile of your industry
• How much and what type of property do you own/rent?
• Number of employees
• Planned and expected growth
• Your sales
