There are dozens of types of commercial insurance available, but you don’t need to buy all of them to start a successful business. Since every business is unique, you will need to design a custom insurance package that provides the level of protection you need. Listed below are five essential commercial insurance plans to help a new business in Tampa to run smoothly.
This insurance protects the assets owned by your business in the event it gets damaged or destroyed. Property insurance is especially necessary if you own land or expensive equipment. Without it, an accident may cause your company to go bankrupt. Even if your business is run from your home, the average home-policy insurance will not cover commercial assets and property.
Property insurance is available in two main types: all-risk policies and peril-specific policies. As the name suggests, an all-risk policy will cover a wide range of incidents. A peril-specific policy will only cover a certain incident, such as crime, floods, or fires.
Product/Professional Liability Insurance
Product liability insurance is designed for companies that retail, distribute, wholesale, or manufacture a product. It protects the business from financial loss that may result from a defect product causing bodily harm or injury to a customer. The amount you spend on this insurance should be based on the products you are selling. For example, a shoe store would have far less risk than an appliance store.
Professional liability insurance is for a business that provides services. It protects the company from the effects of negligence, errors, and malpractice when delivering your service. Some governments require this type of insurance for specific professions. For example, doctors in many states have to buy malpractice coverage before starting their own practice.
Business Income Insurance
This type of business insurance will cover financial loss that may result when the company’s facilities are being rebuilt after a disaster. It is designed to cover any type of business and will provide the same financial position that the company would be in if there no income loss had occurred. Income insurance is not usually used as a stand-alone policy, but it can be added to a comprehensive package.
Worker’s Compensation Insurance
Employee injuries while on the job are not common, but when they happen, it can result in an expensive compensation package or even a lawsuit. A business with compensation insurance will take the financial burden off your business in the event of a mishap. Additionally, having this insurance usually prohibits the employee from filing a lawsuit against you.
Commercial Automobile Insurance
This last policy may seem surprising, but it is just as important as other types of insurance. Any company that uses trucks or cars will need coverage in case of an accident. This is particularly essential for companies with large fleets of vehicles, since it raises the possibility of a mishap.
Insufficient coverage is often the biggest mistake a new business owner can make. Even if the worst does not happen, it is always good to prepare for it. Spending $1,000 on insurance fees isn’t nearly as bad as losing a million dollars in a crisis. The agents at Mid Florida Insurance Professionals are Tampa’s experts in the Commercial Property and Casualty Insurance industry. Call us today for a no-obligation consultation (813) 962-3082.