BUSINESS INSURANCE FAQs

Business Insurance is designed to protect your business from financial losses. Since every business has its own unique set of risks, Business Insurance must be tailored to your particular type of business.

Without Business Insurance, you may end up having to pay out-of-pocket for property damage, accidents, or lawsuits. Depending on your business, some customers will not want to work with you unless you are insured, especially if you work on a client’s property.

Depending on the nature of your business and any insurance that you are legally obligated to carry, Business insurance coverage can include the following:

• General Liability Insurance
• Professional Liability and Malpractice Insurance
• Product Liability Insurance
• Commercial Property Insurance
• Workers’ Compensation
• Loss of Income Coverage
• Cybercrime Insurance
• Records Retention Policies
• Employment Practices Liability (EPL)
• Fidelity and Crime
• Management Liability

Some businesses need specialty coverage for equipment, shipping and other risks. Because commercial insurance needs to be tailored to each business based on risks, it is critical to work with an agent who will get to know your company and ensure that your coverage adequately protects your business investment.

It depends on the size and nature of your business, as well as factors such as the amount of assets your business owns and how much liability you wish to purchase.

For most businesses, the answer is No.  Business Insurance may be required from your landlord, mortgage holder, lien holder on equipment, your clients, and possibly others.

No, a Flood Policy is the only insurance that typically covers flooding.

Business Owners Policy (BOP) is a package insurance policy that is designed for small to mid-size businesses. It usually includes Property and Liability Insurance, and several add-ons such as Business Income Coverage.

A standard BOP does not extend to company cars. You would need to purchase a separate Commercial Auto Insurance policy to protect company vehicles.

It depends on the type of business, the coverage you have selected on your Homeowners Insurance policy, and your state’s laws. It’s a good idea to consult with your Homeowners Insurance agent to review your coverage and determine whether it will help protect a business that you run out of your home.

Home-based business insurance that includes a general liability policy can usually cover:

• Bodily injury to another person, such as a client or vendor
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Business property insurance covers the building and its contents.

E&O is a form of professional liability insurance that covers a business for services rendered that did not have the expected or promised results, or that result in a financial loss to the person receiving those services. It also covers situations where the individual or company failed to render services at all. Malpractice insurance is also a form of professional liability insurance. Malpractice insurance covers healthcare professionals, physicians, dentists, pharmacists, and others.

Standard liability insurance will cover some legal fees, but some types of lawsuits are only covered by other optional liability policies. Talk to your business insurance agent to explain in further detail about your options.

Yes, as long as the coverage is for the purpose of operating a business, profession, or a trade.

Business interruption insurance reimburses a business owner for lost profits and continuing fixed expenses during the time that the business must stay closed while the premises is being restored due to physical damage from a covered peril, such as a fire. 

An Umbrella Insurance policy kicks in after your other policies (like commercial auto liability, general liability or other liability coverages) have been exhausted due to an expensive covered claim, providing the underlying limits satisfy the umbrella requirements. Umbrella insurance is typically not required, but often recommended.