Insurance Basics

Most employers have to purchase several types of insurance coverage just to operate a business. Some of these insurance coverage’s are required by law and others are required by contract, so the purchase of insurance is typically not optional.

There are 5 basic types of Business Insurance coverage:

  1. Property Insurance– protects structures, equipment and contents from loss if the structure catches fire, is hit by lightning or damaged due to a hurricane or from other perils.
  2. General Liability Insurance– if a customer is injured while on your property, General Liability coverage protects you from lawsuits brought by the injured customer. Also, it covers liability from your products or services called completed operations.
  3. Workers’ Compensation– if an employee is injured at work performing their duties, this coverage pays for the medical care and lost wages if a doctor declares the employee can’t work.
  4. Automobile Coverage for Businesses- provides coverage for bodily injury or property damage from use of a vehicle.
    1. Liability Coverage- if the company driver injures another person, be it another driver or pedestrian, then this coverage will pay the cost of medical care due to the drivers negligence which caused the injury.
    2. Property Damage- if the company driver damages a vehicle or other property, such as a fence or telephone pole, this coverage responds to pay the cost to   repair the damaged property.
  5. Inland Marine -the word ‘marine’ means mobile or moveable. In general this coverage protects against the loss from equipment (bulldozers/ aerial lifts, etc.) and other valuable from being used or transported. Of course, inland means on land and not in or over the water.