Purchasing business insurance is a part of your risk management plan as a business owner. With the right type of business insurance in place, you can avoid financial losses and avoid financial pitfalls. In exchange for monthly or annual premium payments, your business can transfer risks to your insurance company and save thousands of dollars.

Commercial Auto Insurance Prevents You from Paying for Auto Repairs

When you rely on vehicles to conduct business transactions, you need commercial auto (CA) insurance. The main difference between personal auto insurance and business auto insurance is one protects you, while the latter protects your business (and its assets). Business auto also provides coverage for loading and unloading which most personal auto policies do not — and here’s where it gets interesting.

Imagine you’re unloading a refrigerator and, let’s just say, you hit an expensive vase on the way into the building. You’d need to file a general liability claim, right? Wrong. It’s a commercial auto claim. And if you don’t have that coverage, then guess what — you’re not covered. One of the biggest overlooked and most needed coverages of commercial auto is loading and unloading which means, until the item your unloading reaches its final resting spot, it’s only covered under commercial auto. Pretty cool huh!

Another area where CA rocks is when your employees drive for business purposes. There are many reasons for this — such as trips to the bank, to the grocery store (if, for example, your business is a restaurant and run out of mint for your famous mojitos), superintendents visiting their jobsites, and more. Adding non-owned auto coverage can make the difference between being covered and facing a financial catastrophe. Whether your drivers are in an at-fault accident or someone hits them, you won’t be responsible for paying for the damage with the money your business generates.

General Liability Keeps Your Business Going

General liability insurance is essential for all businesses, especially new businesses. As a business owner, the possibility of getting sued is an ever-present threat. A customer may slip and fall in your retail store or accuse you of one of your products failing and causing them damage. If the courts find you responsible, settlements for court cases of this nature can easily be millions of dollars. Even well-established businesses have closed their doors following cases of this magnitude.

Fortunately, with general liability insurance, you can get the financial assistance you need to help you in cases such as these. Instead of paying for the settlements with business revenues, your insurance company can help you pay for eligible losses.

Commercial Property Insurance Keeps Your Facilities Intact

Another type of business insurance that may pay for itself if you ever need to file a claim is commercial property insurance. With commercial property insurance, you can get help repairing your facilities in the event of a fire and other covered loss.

Workers Compensation Insurance Protects Your Business and Your Employees

Workers compensation (WC) insurance provides protection for on the job injuries that employees sustain; because of that, workers comp is mandatory in most states. This coverage provides peace of mind for you as an employer in the event that an employee is injured. WC provides medical care and benefits that protect both you and your employees. Without it, you’d be expected to pay out of your own pocket for these expenses — which could be a recipe for financial disaster.

Another benefit of WC is employer’s liability protection. This covers lawsuits brought against you by your employees when they are physically injured and you’re being held to be negligent.

Employers Protective Liability Insurance

Employers Protective Liability Insurance (EPLI) provides coverage for most of the other areas where you may be sued by an employee, potential employee or previous employee. These include discrimination, sexual harassment, wrongful termination, etc. If you’re ever involved in one of these, they can be very expensive to defend. These days, the rules of hiring and firing can be so complex that even if you follow them, you could still end up in court.

And remember, regardless whether you actually did anything wrong, the accusation alone could be grounds for a lawsuit.

At every turn, the possibility of legal action threatens your business. The most effective way to minimize your financial risk is by purchasing business insurance. If you don’t have all the business insurance you need to protect your business, call Tanenbaum Harber Insurance Group today for a free business insurance consultation. It would be our pleasure to discuss your business and point out the risks it faces that you may not be aware of. Remember, protecting your business is our only business.