Running a business comes with risks. Purchasing insurance helps you manage those risks. There are many different types of business insurance. Not every business needs to purchase every type. A business owner’s policy includes three of the most common types of business insurance.
1. General Liability Insurance
General liability insurance in Peoria AZ protects your business from financial loss due to damages caused to another party by you or your employee’s negligent actions that you are legally obligated to pay. An example is a slip and fall accident on your premises. If the person who fell was injured because of the negligence of someone representing your business, then your business is legally liable to pay for that person’s damages.
2. Commercial Property Insurance
Commercial property insurance protects structures you rent or own, equipment, inventory and other property from losses due to damage caused by fire, wind, explosion, sudden and accidental discharge of water, theft, vandalism and other covered causes of loss. Coverage for floods and earthquakes is usually excluded. You will need to purchase a separate insurance policy if you need coverage for those perils.
3. Business Income Insurance
If your business is unable to operate or can only operate at reduced capacity due to damage caused by a covered cause of loss, business income insurance provides coverage for lost income during that time. The amount of payment you will receive is based on financial statements from previous years. This coverage helps you pay for expenses that are ongoing during a business interruption, such as rent, utilities and payroll. Without this coverage, some business owners may find it difficult to reopen after repairs are made.
A business owner’s policy is a package that includes three of the most commonly purchased types of business insurance. This package helps protect your business from catastrophic losses due to liability, natural disaster or other events.