In 2018, legal disputes on commercial liability cost US businesses $343 billion. Small businesses shelled out over half of that, or about $182 billion.
The good news is that business insurance can shield you against such costs. They can protect you against medical costs, lawsuits and even help you pay for a lawyer if you get sued.
There are many types of commercial insurance, though, so it’s a must to know which ones you need. We rounded up the top ones your business shouldn’t go without, so be sure to read on.
Commercial General Liability (CGL) Insurance
As explained by Erie Mutual Insurance, CGL insurance covers bodily injury and property damage. It also helps cover costs to defend your business against legal disputes. These legal matters can occur if a client sues your business for negligence.
A CGL insurance policy may also protect you against intellectual property infringement cases. Other CGL policies even include coverage for libel and slander.
Workers’ Compensation Insurance
In the US and Canada, workers’ compensation insurance is often mandatory for businesses. Texas is the only state in the US that doesn’t require employers to get worker’s comp. Despite that, most Texan business owners still purchase this coverage for their employees.
Workers’ comp provides medical and wage benefits to workers who get injured or ill on the job. It also pays out death benefits to the survivors of an employee who dies due to a work accident.
Without workers’ compensation, employers would shoulder those financial responsibilities. Injured or ill workers (or their families) can also sue them for negligence.
As such, workers’ comp is one of the types of business insurance that you should never go without.
Employers’ Liability Insurance
Employers’ liability insurance covers businesses against areas not covered by workers’ comp. Some of these include employee claims of discrimination, harassment, or wrongful termination. It protects businesses from such claims and also helps cover legal defense costs.
Do note that some workers’ comp policies already include employers’ liability insurance. So, be sure to check with your insurer first before you buy a separate policy.
Commercial Auto Insurance
In the US and Canada, almost all drivers must meet the minimum car insurance requirements. These include folks who drive company-issued vehicles. So, if your business has registered vehicles, you must buy auto insurance.
Your personal car insurance policy won’t cover claims for business vehicles. The same goes for a worker who crashes a company car and tries to make a claim against their personal policy. Insurers will deny these claims, as such accidents are work-related.
Premises Liability Coverage
Premises liability coverage covers accidents that take place on business premises. It helps pay for the medical costs of the person who gets injured on your premises. It also protects you from lawsuits and covers your defense costs if you do get sued.
This is one of the few commercial insurance options usually not mandated by law. Still, it’s a smart move to purchase it since slips, trips, and falls are very common in businesses. Do note that falls land up to 800,000 people in the US in hospitals each year.
Get These Types of Commercial Insurance for Your Business Today
There you have it, your guide to all the key types of commercial insurance your business needs. As you can see, these policies can protect you, your people, and your clients from the high costs of accidents. More than that, most of them are legal must-haves, so be sure to get them ASAP as you don’t want to break any law.
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