What are the 6 types of insurance Coverage ?

The insurance industry packages named risks into classes of policies intended to cover various forms of business or business activities.

Commercial General Liability

The basic form of business liability coverage protects (up to policy limits) against damage or loss to property,bodily injury,personal injury (including slander or libel), and advertising injury and related claims. A good policy also extends to other liabilities, including protection for damages and legal expenses related to an injury caused by a product or service provided by your company, other kinds of product liability, and liability for certain risks you may assume under a contract.

Property Coverage

This sort of policy offers protection against loss or damage to your business property as the result of fire, theft, and certain other situations. (Some policies exclude or limit loss due to floods, windstorms, and other risks.) Depending on the nature of your business, you may need to extend coverage to protect against loss of property owned by customers and to insure against loss of valuable papers, records, and data stored on computer media. For most companies, the best type of coverage offers to pay for lost property at replacement value rather than at its generally lower (depreciated) actual value. With the assistance of your insurance agent, make a realistic appraisal of the cost you would face if all of your business equipment, inventory, and vehicles, or the structures that hold them, were lost. If you have $250,000 in potential losses, you should have coverage that comes very close to that amount; one way to reduce your insurance premium is to accept a small amount of the risk yourself by choosing a policy with a higher deductible that is still within your ability to absorb. There is, however, no reason to pay for a coverage limit that is higher than the amount you could collect in the event of a loss.

Business Owner’s Policy (BOP)

This insurance package brings together general liability and property coverage in a single policy that usually costs less than individual plans; BOP is generally offered to small and medium-sized businesses that do not have extraordinary exposure to loss. This sort of policy does not ordinarily protect against errors, omissions, or negligence; a more inclusive professional liability policy should be considered if your business is exposed to those sorts of risks.

Professional Liability Insurance for Errors and Omissions

For professional businesses, including consultancies, accounting, and advisory services, this is somewhat like malpractice insurance. This coverage protects against claims for errors or omissions in your work and for negligence.

Umbrella Coverage and Excess Liability

One way to save money on insurance costs is to extend your overall coverage level by purchasing an umbrella policy. These policies are secondary to basic coverage, adding more available funds after other policies have reached their payout limit.

Business Auto Insurance

If your company owns, leases, or rents vehicles, or if any employees use their own vehicles for business purposes, this sort of policy will protect against liability claims for injury to others or damage to other vehicles and property. The policy can also include collision and comprehensive coverage to pay for damage to your own vehicles and for protection against theft of personal contents.