One of the first tasks you face as a new business owner is making sure your business is protected from loss with the right commercial insurance. A single uncovered incident or lawsuit could spell disaster for your fledgling business, draining your financial resources and causing you to shut your doors forever.
While your particular city and state may have additional coverage requirements, there are certain universal commercial insurance policies that every commercial business should have. These essential commercial insurance policies include:
General Liability Insurance – The most basic form of business insurance available, general liability insurance is a must for every business, as it protects you in case anyone is injured by a product or service you sell. Your landlord may actually require you to carry commercial general liability insurance, as it also provides legal protection in case anyone is injured at your place of business, protecting you from the legal hassles and liability associated with accidents, injuries, and claims of negligence.
Commercial Property Insurance – Many business owners mistakenly assume that if the building they are in were burgled or burned,their items would be covered under the landlord insurance policy. This is only true if any damage that occurs is due to neglect of the landlord. Inquire about available policy add-ons, which extend your coverage at an additional cost; popular add-ons include Full-replacement Cost Coverage, which pays the actual cost of replacing lost items, rather than a depreciated value and Business Interruption.
Business Interruption Insurance – This coverage is essential for the long-term survival of your business, as it provides coverage for loss of income due to a covered claim (fire, water damage, etc.). Standard business insurance will pay for property damaged in a covered claim, but does not address the loss of income you face because of that claim. For instance, when you add business interruption coverage, also known as loss of business income insurance, in addition to reimbursement for the property lost in a fire, you are also reimbursed for the income lost during the weeks it takes before you can re-open for business.
Professional Liability Insurance – If you have a business that offers any sort of professional advice or service to clients, such as accountants, architects, engineers, attorneys, or consulting firms, you should have a Professional Liability Insurance policy in place. Anytime you offer advice to clients, a simple mistake or undesired result can tempt disgruntled clients to sue. Even though there may not be a valid claim, defense costs can quickly escalate, significantly damaging your financial solvency. Professional Liability Insurance covers you from claims made for negligence, failure to perform, and inaccurate advice, as well as perceived financial loss and violation of good faith and fair dealing.
The insurance experts at MHG Insurance Brokers are available to answer all your business insurance questions, from general inquires such as, “As a new business owner, what types of commercial insurance do I need?” to specific questions about the exact type and amount of coverage you need.
When you choose to work with MHG for your commercial insurance coverage, we will analyze the unique needs of your business to secure the best plan for you from our complete line of business insurance solutions.
Contact MHG Insurance Brokers today at 954-828-1819, to learn more about obtaining commercial insurance that will fully protect your new or existing business or visit us online anytime at mhginsurance.com.