6 Types of Business Insurance Coverage That You Need | Chambers & Company Insurance Brokers

Why Do Businesses Need Insurance?

The importance of purchasing insurance coverage for your business cannot be overemphasized. Every business is at risk of suffering mishaps that threaten to hinder its continuance; hence, you must be well-protected at all times. Buying insurance for SMEs is a financially wise decision because growing businesses cannot afford to lose their assets. Business insurance covers you under several unanticipated circumstances, including theft, burglary, fire, adverse weather, and personal liability. Your provider pays a sum of money to repair or replace damaged or stolen properties and covers medical expenses should you or a visitor suffer any injuries while on your premises.

Here are the types of insurance coverage that every business must have in place for adequate protection:

Business Liability Insurance

Business liability insurance covers expenses incurred by third parties harmed by your work. Although your customers are most likely to experience harm if your products malfunction, innocent bystanders can also be affected. For example, if your business is using a propane tank and it explodes, having a fire and hazard insurance in place will protect your company’s assets from the resultant expenses. This coverage is non-negotiable in any business; it takes care of the legal expenses if you get sued for damages and hospital bills to treat the injured.

Workers’ Compensation

This policy provides financial coverage for injuries suffered by your employees during their course of work. This type of insurance is mandatory for all California employers. One of the benefits to employees is that this coverage gives them a sense of security and peace if injured at work. If they are injured and unable to work, workers’ compensation ensures that their families don’t have to suffer financial hardships until they are able to resume work.

Business Owners Policy (BOP)

A business owners policy (BOP) protects business owners against damages like fire, wind, vandalism, as well as business liability. This coverage is ideal for any smaller SME.

Commercial Auto

Commercial auto insurance or commercial vehicle insurance covers different vehicles used for business purposes. It does not cover personal vehicles that are used for business purposes. The coverage for this policy depends on the specifications of your business. Your policy can include damage to your vehicle, damage to other people’s property, and injury to others.

Commercial Property

Commercial property coverage. This policy protects your office building and business personal property against damages caused by natural disasters, fire, burglary, and vandalism. It helps prevent out-of-pocket costs for the replacement and repair of damaged or stolen goods or properties.

Commercial Umbrella

Commercial umbrella insurance is added liability protection for your enterprise. This policy kicks in after you have exceeded the coverage limit of your commercial liability policy. It has a significantly higher coverage limit than other policies and acts as excess coverage over an existing liability policy. Without an umbrella policy, you will have to pay out-of-pocket costs for liability claims that cost more than your liability coverage limits.

These are a few types of insurance coverage that you must have in place to protect your business. At Chambers & Company Insurance, our team of experts can help you get the right business insurance coverage to suit your unique needs. To learn more about how we can help protect your business in Camarillo, CA, contact us today!