When you own a business and hire employees to help you get work done, you are often required by law to carry at least some sort of insurance to protect your business and/or employees. Below are several types of business insurance coverages, but to know why you should get business insurance coverage, see the reasons we’ve listed in our other blog: The Benefits Of Business Insurance.
The most common insurance that is required by law to carry is Workers' Compensation Coverage. This type of insurance covers the employees from injury on the job. If an employee slips and falls while working because of a wet or slippery floor, or they strain their muscles as a result of lifting something too heavy for them, or even experience a health condition because of stressful working situations, they may file an insurance claim to cover doctor visits and time lost while trying to recover. It is important to keep your employees as safe as possible in the workplace so that you don’t have to face these claims.
General Liability Insurance commonly shortened to Liability Insurance and may be referred to as Commercial General Business Liability by some insurance agents. The purpose of General Liability Insurance is to protect a business’ assets from a number of legal issues, such as person injury while on your premise or property damage caused by an employee.
An employer may also want to look into purchasing Employment Practices Liability Insurance to protect themselves and their business against claims made by an employee who accuses the business or employer of discrimination, harassment, wrongful termination, or deprivation of career opportunities. To avoid such claims, employers should practice equal opportunity employment and thus give each employee equal benefits, opportunities, treatment, and respect.
Another type of insurance similar to General Liability is Professional Liability Insurance (PLI) or Errors & Omissions Insurance. This type of insurance protects companies who provide advice or skill-based services (such as a doctor, contractor, consultant, etc.). PLI also extends coverage to include actions or inactions of employees and if the advice or skill causes harm or some type of damage to a client.
For example, a misdiagnosis of a doctor that leads to the worsening illness of a patient or poor workmanship of a general contractor causes injury to the homeowner are plausible scenarios that could have harmed a client that can be covered under Professional Liability Insurance.
These business insurance coverage options can be purchased for the sake of peace of mind but can be extremely handy if a lawsuit ever arises. Insurance protects businesses from losing its assets or having to close their doors permanently. These are only a few, but quite important insurances when thinking of the longevity of your entity.
Speak with one of the independent insurance agents at Magruder to discuss the benefits of business insurance coverage and which types of business insurance coverages would benefit your business most.