Liability, Property, Business Auto, Workers Compensation, Umbrella

General Liability

Liability insurance protects a business from third-party claims for injury or property damage. This includes damages incurred from bodily injury, property damage, personal injury (libel or slander) and advertising injury. It also covers legal costs arising from a claim.

General liability insurance can be purchased by itself or as part of a package.

Although not required by law, every business should carry general liability insurance.

Property Insurance

Property insurance basically covers a building, its contents, tools, equipment and income from losses due to fire, theft and wind damages. Perils such as flood, earthquake, mechanical breakdown, pollution and acts of terrorism and war are excluded, but can be added in most cases for an extra premium.

Business Auto

Any company that uses vehicles for their business purpose should carry a commercial auto policy. Though similar to a personal auto policy, it provides higher limits and can be extended to cover an employee's or a rented vehicle. Whether the company actually owns the vehicles or uses employee’s personal vehicles, does not matter. As long as the person driving the vehicle is on company time, the liability is with the business.

Workers Compensation

If a company has employees, it is required by law to carry workers compensation insurance. This policy covers the costs of lost wages and medical care for work related injuries or diseases.

This coverage does not replace disability insurance.

Excess Liability or Umbrella Coverage

Umbrella liability insurance adds extra protection for catastrophic accidents or incidents in which a number of people are injured. It also extends liability limits on a commercial auto policy. Limits are generally purchased in $1 million increments, from $1 million to $10 million or more. This coverage is especially crucial for any business that sells a product or renders a contractual service.