Commercial And Business Insurance Liability Plans

When it comes to finding the right business liability insurance, Colorado or in another state, it’s important to keep in mind that there are various types of coverage – there is no “one size fits all” approach. The sort of service your business provides and even its location will inform the choices a business owner must make when deciding the best plan for them.

Here are several classifications of business liability insurance in Colorado, and explanations of exactly who these policy types are geared toward:

No matter what the industry, all business owners should consider purchasing general liability insurance, since this type of insurance covers legal fees incurred as a result of injuries or accidents stemming from negligence or some other fault on the part of the business. General liability insurance also provides damages – so if a third party happens to incur either bodily injury or property damage as a result of actions performed by you or your employees, or resulting from use of your products, this policy will cover you. Keep in mind that even home-based businesses should have this type of policy.

Property insurance does just as its name describes: It protects your equipment, inventory, tools and facility in case of damage or vandalism. This type of policy will fall under one of two categories. All-risk policies cover the general risks faced by any small business, while peril-specific policies cover only that which is described in the policy and are purchased in instances where a high risk of peril is involved in the area in which the business is located. Not only does a policy protecting physical items come in handy, but it’s also a good idea to include a plan to cover business interruption/loss of earning. After all if fire or flood damage your equipment, it stands to reason that the business won’t be operational for a time.

If you manufacture products, then product liability insurance should be part of your overall plan. The level of coverage you purchase should be in relation to the types of products you manufacture. For example, a car manufacturer would need a higher level of coverage than a clothing manufacturer, as the former’s faulty product could potentially cause greater damage.

Service providers should purchase professional liability insurance coverage. You may also see this referred to as errors and omissions insurance. This type of insurance protects business owners against negligence, errors and malpractice. Some states require members of certain professions to carry this insurance; for example, physicians must carry malpractice insurance in order to practice in certain states.

Worker’s compensation is another requirement for all business owners with W2 employees. This covers wage replacement and medical benefits for employees who are injured on the job, and protects business owners from potential legal complications as employees who accept worker’s compensation benefits forfeit the right to sue their employer as a result of their injury. You may want to check the specific laws for Colorado insurance – and the penalties for not having any, as they can vary from state to state.

If your business is home-based, you may not realize that homeowner’s insurance generally won’t cover your business losses. Home-based business insurance will cover any extra business-related losses should this be the case.

business-liability-insurance-man-with-umbrellaIf you are looking to buy small business insurance, Colorado or within another state, or have specific Colorado insurance questions, it’s best to contact your representative for advice. But now that you’re a bit more well-versed in the common types of small business insurance in Colorado, you’ll be able to go into the conversation with some idea of the specific types of policies which apply to your situation.