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An integral part of running a business is accounting for risks and exposures that may lead to workplace incidents. Regardless of how diligent you may be in assessing and addressing potential issues, even the most robust precautions and risk management practices may not suppress every hazard. A sufficient insurance portfolio is a necessary loss control measure for any business. 

What Is the Purpose of Insurance for a Business? 

Acquiring and maintaining adequate business insurance is a crucial step toward securing your organization’s finances and future. Business insurance does not generally refer to a specific type of coverage but rather a collection of policies that, when combined, provide ample financial protection in the wake of an incident. Without suitable business insurance, your company could be saddled with high out-of-pocket costs that could have irreparable financial ramifications.  

What Does Business Insurance Cover? 

Every business has unique circumstances that must be accounted for when determining optimal business insurance options. While the details may require consideration and customization, in general, it may be advisable for your company’s insurance portfolio to include the following: 

• General liability insurance can help pay for resulting costs if your business was responsible for an incident that affected a third party, such as the following:
  • Bodily injury
  • Property damage
  • Personal and advertising injury (e.g., slander, false advertising, copyright infringement)
• Commercial property insurance, also known as business property insurance, focuses on protecting you from losses involving physical assets used by your company, such as the following:
  • Structures
  • Equipment
  • Inventory
  • Furniture
  • Signage
• Business interruption insurance, also known as business income insurance, can provide financial assistance if a covered event temporarily affects your company’s ability to conduct normal operations by helping to pay for the following:
  • Rent/mortgage payments
  • Lost income
  • Employee wages
  • Tax payments
  • Loan payments
• Workers’ compensation insurance can be crucial in the wake of a workplace incident that leaves employees injured or ill. An adequate policy may help cover the following:
  • Healthcare costs
  • Lost or reduced wages
  • Disability benefits
  • Death benefits
  • Legal expenses
• Professional liability insurance, also known as errors and omissions insurance, can help pay for the following costs if another party accuses your business of providing services that were inadequate, incomplete or late:
  • Damages
  • Legal representation
  • Disciplinary proceedings
  • Lost income Subpoena assistance 

In addition to the aforementioned policies, your business must analyze its specific risks and exposures to identify any gaps in coverage that may make additional insurance, such as the following, necessary: 

• Commercial auto insurance
• Cyber liability insurance
• Products/completed operations liability insurance
• Employment practices liability insurance
• Inland marine insurance
• Commercial umbrella insurance 

How Much Does Business Insurance Cost? 

Given how much the insurance needs of businesses may vary, it should be no surprise that the cost of adequate coverage may also have a wide range. Before presenting you with an accurate quote for adequate policies, insurance providers must consider the details of your business, including the following criteria: 

• Operations
• Location
• Workforce size
• Company assets
• Estimated annual revenue
• Policy details (e.g., coverage limits, endorsements, deductibles)
• Claims history 

Get the Right Coverage 

Regardless of size or industry, all businesses bear certain levels of risk. Even the safest workplaces are not immune to accidents and errors, and without adequate insurance, a single incident could have catastrophic consequences. 

At Keats Insurance Agencies, our experts are well-equipped to help businesses across the state of New York understand and address their coverage needs. Contact us today to get started.   

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