Does your business have the insurance coverage it needs to protect your company and its assets?
Businesses are at risk of hazards and losses that could devastate the future of the company—unless those losses are covered by insurance plans. As a business owner, you need to review the needs of your company and speak with an insurance expert about what policies are right for your business.
6 Different Types of Business Insurance
There are several types of insurance policies available to business owners in Michigan. While some are recommended for all businesses, others are more relevant to certain industries or situations.
1. General Liability Insurance
General liability insurance coverage is an essential policy for any type of business.
Liability insurance protects businesses against losses, even if those losses are due to negligence. Claims of bodily injury, property damage, or advertising injury are covered by general liability policies. It can also help in tort cases such as libel and slander.
2. Professional Liability Insurance
Professional liability insurance, also called errors and omissions (E&O) liability insurance, protects businesses that offer professional services to customers or clients. If you or one of your employees is negligent or makes an error, E&O coverage can protect your business from financial loss.
3. Directors and Officers Liability Insurance
Directors and officers (D&O) liability insurance is essential for companies that have a corporate board of directors (BOD) or advisory committee. In the event that members of your BOD are sued for wrongful acts relating to their management of the company, D&O coverage will protect their personal assets.
4. Property Insurance
Property insurance is another important policy for business owners. This type of coverage protects your business property against physical loss or damage.
Many types of property are protected by property insurance:
- Physical business location, including buildings owned
If your business property is damaged or lost in a covered event, property insurance can help replace your belongings.
5. Workers’ Compensation Insurance
Worker’s compensation insurance, commonly called worker’s comp, is required by law for all employers to carry. This coverage provides benefits to your employees if they become injured or sick during the course of employment with your company.
This policy helps pay for the following expenses:
- Medical care
- Lost wages
- Disability benefits
- Funeral expenses
If your employees are hurt on the job, worker’s comp will handle payments and protect your finances.
6. Commercial Vehicle Insurance
Many companies need commercial vehicle insurance. If your business falls under any of the following categories, it is especially important:
- Businesses with workers that drive company vehicles
- Businesses that own, lease, or rent vehicles
- Businesses that have employees drive their personal vehicles as part of their job
Commercial vehicle insurance helps cover accidents caused by you or your employees, including collisions and personal or property damage.
A Package Deal: The Business Owners Policy (BOP)
A business owners policy (BOP) is a package policy that typically contains a combination of general liability insurance, property insurance, and other optional coverage. For example, a BOP may include business interruption coverage that will cover lost revenue in the event of a covered claim.
This type of business insurance policy is ideal for small to midsize businesses with low risk. You may have the option of a BOP depending on the type of business you own, the number of people you employ, your annual sales, and other factors.
Some businesses are not eligible for a BOP:
- Businesses with large premises operations
- Businesses that require high liability limits
- Businesses in a high-risk category
- Businesses that conduct most of their operations off-premises
If your company has any of those characteristics, a BOP may not be suitable for your business.
Note that a BOP typically does not include worker’s compensation insurance or commercial vehicle insurance, so you will need to purchase additional plans to protect your business from risk.
Contact Melton McFadden to Get Michigan Business Insurance
At Melton McFadden, our experienced insurance professionals can help you develop a business insurance plan that protects your business, employees, revenue, and peace of mind. We are ready to guide you through the process of identifying areas of risk, finding gaps in your current insurance plan, and creating a business insurance solution that works best for you and your company.
Whether you are looking to protect your inventory against loss or secure additional insurance for your business, we’re here for you every step of the way.
Contact us today or request a free quote to get started.