MCG Service

10% OFF TAX PREPARATION CODE: MCG2024

Menu

What is Business Insurance?

Business insurance is a contract between a business and an insurance provider where the insurer agrees to cover certain financial losses and liabilities that the business might face in exchange for regular premium payments. It helps manage risks associated with running a business and can provide peace of mind by mitigating financial burdens from unforeseen events.

What Does Business Insurance Cover?

General Liability Insurance

Coverage: Protects against third-party claims for bodily injury, property damage, and personal injury (like libel or slander).  Examples: If a customer slips and falls in your store or if your advertising unintentionally damages someone’s reputation.

Professional Liability Insurance (Errors and Omissions)

Coverage: Covers claims of negligence, errors, or omissions in the professional services you provide.
Examples: If a client sues you for mistakes in your advice or work
that resulted in financial loss.

Property Insurance

Coverage: Protects physical assets such as buildings, equipment, inventory, and furniture from risks like fire, theft, or vandalism. Examples: Damage to your office space or loss of inventory due to a fire.

Business Interruption Insurance

Coverage: Compensates for lost income and ongoing expenses if your business is temporarily unable to operate due to a covered event. Examples: Lost revenue if a natural disaster forces your business to close temporarily.

Workers' Compensation Insurance

Coverage: Provides medical benefits and wage replacement for employees who are injured or become ill due to their job. It also protects your business from lawsuits related to workplace injuries. Examples: Coverage for medical expenses and lost wages if an employee is injured on the job.

Commercial Auto Insurance

Coverage: Covers vehicles owned by the business for damages and liability arising from accidents. Examples: Damage to a company vehicle in an accident or injuries caused by a company vehicle.

Cyber Liability Insurance

Coverage: Protects against losses resulting from data breaches,
cyber-attacks, or other cyber-related incidents.
Examples: Costs related to a data breach that compromises
customer information.

Directors and Officers (D&O) Insurance

Coverage: Protects directors and officers from personal liability for
decisions made in their professional capacity.
Examples: Claims related to mismanagement or breaches of
fiduciary duty.

Employment Practices Liability Insurance (EPLI)

Coverage: Covers claims related to employment practices such as
wrongful termination, discrimination, harassment, or other
employment-related issues.
Examples: A lawsuit alleging wrongful termination or discrimination

Product Liability Insurance

Coverage: Covers claims related to injuries or damages caused by
products your business manufactures or sells.
Examples: A customer injured by a defective product you sold.

Umbrella Insurance

Coverage: Provides additional coverage beyond the limits of your
existing policies. It’s a secondary layer of protection that kicks in
after primary coverage limits are exhausted.
Examples: Additional coverage for liability claims that exceed your
general liability policy limits.

CrimeInsurance

Coverage: Protects against losses due to criminal activities such as theft, fraud, or embezzlement.
Examples: Coverage for financial losses due to employee theft or a
fraudulent scheme.

Each type of business insurance covers specific risks, so it’s important to evaluate the particular needs and risks of your business to ensure you have appropriate coverage. Consulting with an insurance professional can help tailor a policy that fits your business’s unique requirements.