Business Insurance

Business insurance is a contract of insurance between the insured and an insurer, which entitles the insured to be indemnified against specified losses.

Available coverage for business organizations consists of property insurance and liability insurance. Property insurance covers buildings, machinery, equipment, furniture, and fixtures owned by the business. Liability insurance provides defense costs as well as payment for damages arising from claims of injury to third parties or their property.

Business insurance is usually purchased in one of three forms: as a single policy combining all coverages, as separate policies, or through an excess liability policy that provides higher limits for the most significant exposures and covers specific assets with lower limits.

Businesses obtain coverage for various risks including fire, flood, burglary, and robbery; employee dishonesty and fraud; product liability; business interruption of operations; auto liability; cyber-attack or breach of privacy.

Businesses obtain coverage for various risks including fire, flood, burglary, and robbery; employee dishonesty and fraud; product liability; business interruption of operations; auto liability; cyber-attack or breach of privacy.

All businesses need: a written Business Owner's Policy (BOP); public liability coverage to protect against claims arising from bodily injury or property damage because of business operations; and commercial auto coverage (if the business transports employees in any motorized vehicle).

Most businesses should purchase the minimum amount of insurance required by law. If more coverage is wanted, it is advisable to have an attorney evaluate your situation.

A BOP provides comprehensive general liability coverage, typically including claims arising from bodily injury or property damage because of business operations; advertising and personal injury liability; contractual liability; products-completed operations hazard (business interruption); medical payments; legal defense expenses.

Liability coverage is usually the costliest element in a BOP and as such should be purchased at limits adequate to meet your insured obligations.

The average small business pays about $3,000 to $5,000 annually in premiums. This includes commercial auto premiums and general liability as well as some property coverages.