South Carolina Federal Insurance Solutions

What Is Business Insurance and Why Do I Need It?

Business insurance is a category of insurance policies that specifically protects a company, large or small, from financial loss. Business insurance can include everything from liability and property insurance to business interruption and cybercrime insurance. The business insurance protection that you need is as unique as your company.

The type of coverage you should purchase and the amount of risk your policies should insure are determined by several factors: the size of your company, the number of people you employ, the type of business you’re in and the value of your property and assets.

To fully cover all your financial risks, you may need to purchase several individual policies from different insurers. Your insurance advisor can help you put together an insurance program tailored to your needs.

What Does Business Insurance Cover?

Business insurance usually includes the basic types of coverage listed below. These policies will ensure the continuation of your business in the event of an expensive lawsuit, natural disaster, fire, or theft. Without insurance, a major setback might spell the end of your business.

  • General liability insurance is designed to protect you and your business from many of the risks involved in running a business. These include claims for bodily injury and property damage on your premises, injury or damage from faulty products, and negligent actions from contractors you hire.
  • Property insurance protects against the financial loss and damage to your business property from fires, storms, theft, vandalism, and other named causes.
  • Commercial vehicle insurance is coverage for your business’s vehicles and drivers for collision, liability, property damage, personal injury, and damage to your vehicle.
  • Business income insurance will provide your usual operating expenses if a natural disaster, fire, or other event specified in the policy causes your business operation to be interrupted.

Other coverage you may need:

  • Product liability insurance is designed specifically to cover your liability from faulty products that may cause damage, illness, injury, or death.
  • Professional liability insurance provides protection against the financial impact of negligent professional duty, wrongful acts, advice, and services that lead to another’s loss or injury.
  • Errors and omissions insurance is a type of professional liability insurance that covers a loss or injury suffered as a result of your failure to deliver on promised services.
  • Workers compensation insurance covers employees who are injured or become ill on the job, and it’s required by law in most states.
  • Key person insurance is a form of life insurance that pays a death or disability benefit if the owner or a key person in the company suddenly dies or is incapacitated.
  • Cybercrime insurance covers risks to your business from a data breach or other internet-related crimes.

If you’re starting your own business, it may not occur to you how important it is to buy business insurance. But going without insurance can leave you open to costly lawsuits, expensive repairs or possibly even closure. Talk to your insurance advisor about getting the coverage you need.

The advisors at South Carolina Federal Insurance Solutions* are available to objectively shop top-rated carriers to help you find the most appropriate plan for your needs. They can even help you understand and evaluate coverage that you already have. Learn more at scfinsurance.org.

Source: Trusted Choice®

*The products available through South Carolina Financial Solutions, LLC, a licensed insurance agency doing business as South Carolina Federal Insurance Solutions, a wholly-owned subsidiary of South Carolina Federal Credit Union are not endorsed by South Carolina Federal Credit Union or South Carolina Federal Insurance Solutions, and are underwritten through and provided by insurance companies authorized, licensed, or enabled to provide coverages in the jurisdictions where such coverage is offered. South Carolina Federal Insurance Solutions acts only in the capacity of an agent or broker in obtaining such coverage, and may receive remuneration for policies sold. In all instances where a discrepancy might arise between informational, advertising, and/or marketing material and the actual policy issued by the insurance company, the terms and conditions contained within such policies will take precedence.