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Businesses must take time to prepare for unfortunate circumstances. Although it may not be pleasant to think about accidents or errors, a lack of preparation can cause even minor issues to become catastrophic events. One of the most integral parts of operating a company is implementing effective risk management and loss control measures, such as acquiring an adequate insurance portfolio.
What Is Business Insurance?
Business insurance is a crucial investment that can provide critical financial assistance after various incidents. These policies can protect your company from losses and damages arising from many scenarios. In most cases, an adequate business insurance portfolio should include a combination of the following coverages:
· General liability—This coverage can protect your company from damages arising from incidents for which you were responsible, such as bodily injury, property damage or personal and advertising injury.
· Commercial property—This coverage is focused on protecting your company from losses related to property, such as your building, equipment, tools, inventory, furniture and signage.
· Workers’ compensation—This coverage can provide critical financial assistance if one of your employees suffers an injury or develops an illness on the job. It may be able to help pay for various costs, including medical treatment, lost wages and disability benefits.
· Professional liability—This coverage, also known as errors and omissions insurance, can protect you from losses and damages if a client or customer alleges that your business made a professional error or was negligent in delivering services.
· Business interruption—This coverage may cover expenses arising from a temporary pause in your company’s regular operations. This may include rent and mortgage payments, lost income, employee wages and relocation costs.
· Employment practices liability—This coverage can render aid for legal representation, court costs and settlements if a current or former employee alleges that your business is guilty of improper employment practices, such as discrimination, wrongful termination or harassment.
Business insurance policies can be versatile and may be customized to suit your specific circumstances. Additional coverages may be advisable depending on your company’s operations. For example, a business that regularly utilizes vehicles will likely require commercial auto insurance.
How Much Does Business Insurance Cost?
The cost of adequate coverage may vary significantly for different businesses. Insurance providers must consider many factors before being able to provide a quote. In most cases, companies can expect the following criteria to be considered:
· Location
· Industry
· Workforce size
· Revenue and assets
· Past claims history
· Policy details (e.g., types of coverage, deductibles, etc.)
Get the Right Coverage
An essential part of operating a business is regularly assessing risks and exposures, and implementing proper response plans. Having adequate insurance coverage can be a crucial part of responding to an incident and recovering from it. Without suitable business insurance, even a single mistake could have irreparable ramifications for your business’s future.
For over 40 years, Insurance Partners of Kansas has helped individuals and businesses in Wichita, Derby, Andover and the surrounding areas address their coverage needs. Our agents are well equipped to assess your business and will work with you to construct an ideal insurance portfolio. Contact us today to get started.
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