Types of Business Insurance: Finding the Right Coverage for Your Industry

As a business, you face a unique array of risks and exposures. Legal requirements, clients’ preferences and relevant perils all play significant roles in determining your necessary risk management and loss control efforts. At Adan Financial Services, we’re well-versed in the world of business insurance and will work with you to explore our armory of financial protections to ensure you’re suitably covered.

How Does Your Industry Impact Your Business Insurance Needs?

One of the most relevant factors when considering your insurance portfolio’s essential contents is the industry in which you operate. Of course, a farm’s functions and subsequent risks are typically quite different than those of a retail store or online business operated out of the home. Additionally, certain sectors may be subject to varying legal requirements. For example, if you use motor vehicles for business purposes, such as within the transportation or shipping industries, you’ll likely need commercial auto insurance.

Still, even within the same industry, competitors and similar businesses may have vastly different coverage needs. You must assess your company’s unique circumstances to ensure you’ve identified and secured the right policies.

What Types of Policies Should You Consider?

Although business insurance needs can vary, the following types of policies may be valuable for many companies regardless of industry:

• General liability insurance can cover third-party bodily injuries, property damage and reputational harm for which your company is responsible. This coverage is often the cornerstone of any business’s commercial policy.
• Commercial property insurance can help you replace, repair or rebuild company buildings, equipment, electronics and other tangible assets. This coverage may be suitable for any business with physical assets, including contractors, restaurants, retail shops and offices.
• Workers’ compensation insurance may fulfill legal requirements while protecting you and your staff from the monetary consequences of on-the-job injuries and illnesses. This coverage may be required by law and is generally advisable for a business with employees.
• Business interruption insurance can compensate your business for losses should you have to shut down temporarily due to a covered incident. This coverage can benefit any organization that relies on uninterrupted operations for its success, such as manufacturers and transportation companies.
• Cyber liability insurance may assist with the financial implications of data breaches and other cyber incidents. This coverage has become increasingly important in recent years and may benefit businesses that retain customer data, including names, addresses and credit card information.
• Professional liability insurance, also known as errors and omissions insurance, can offset legal expenses and losses if a client sues you for inadequate or incorrect services. This coverage can be vital for businesses that offer professional services, such as advice or planning.
• Commercial umbrella insurance can provide additional liability coverage should third-party losses for which you’re at fault exceed the limits of your other policies. This coverage may benefit any business that could be exposed to high liability claims, such as those that work directly with customers.

We’re Here to Help

Contact Adan Financial Services today to learn more about business insurance or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.