Get covered in minutes!

Car

Property

Home > Blog > What Is Business Insurance and What Does It Cover?

What Is Business Insurance and What Does It Cover?

There are 32.5 million small businesses in the United States which employ 46.8% of the private workforce, according to The Office of Advocacy, an independent office within the U.S. Small Business Administration. Whether you own a small local restaurant, a hair salon or a landscaping business, chances are, you want to ensure that your employees, business property or vehicles are protected from work-related incidents. However, what your company does and how big it is will determine exactly what your policy will cover and what it won’t.

Some things most insurance carriers take into consideration that may affect a business insurance policy cost are the type of business and the type of policy:

Type of business
The type of business you have plays a role in determining how your premium is calculated.

Location also is a factor as busier, more populated urban areas will usually net you a higher premium where less populated more rural areas would probably not. Other items that could impact your rate include your property’s age, occupancy of the building and how the building was constructed.

Depending on the number of people you employ, the more general liability and professional liability insurance you will need to purchase – the more you need to protect, will generally increase your premium costs.

Type of Policy
Because not all businesses are the same, insurance coverage will vary depending on your individual business needs, size or any other number of factors. With MAPFRE, there are additional protection options available for your business:

  • General Liability: This type of coverage is also referred to as business liability insurance and helps protect you and your business from claims involving bodily injuries and property damage.
  • Property: This type of insurance protects the physical property of your business — whether you own or rent it. The coverage can help protect things such as inventory, tools, equipment, computers and furniture.
  • Professional Liability: When you add-on Professional Liability insurance, you will be protected if a client files a lawsuit against you or an employee over a mistake. This type of insurance is available for barbers and beauticians, florists, funeral directors, printers, optical/hearing aid businesses, etc.
  • Business Owners Policy (BOP): This type of policy combines both property and liability coverage into one package.
  • Commercial Auto: This policy type is necessary if your business requires the use of a company vehicle or a fleet of vehicles. The insurance can help cover property damage or medical treatments of an injured person should an accident occur.
  • Cyber Suite: The Cyber Suite package from MAPFRE protects your business against a range of things like breaches of personally identifying or personally sensitive information, threats of unauthorized intrusion into or interference with computers systems, damages to data and systems from computer attacks and cyber-related litigation.
  • Umbrella Insurance: When you add-on Umbrella Insurance, you will be protected against catastrophic liability claims — beyond what commercial auto, business owners / general liability or renters insurance might offer. This type of policy acts as excess coverage over your primary policy, often with added protection from $1 million to $5 million depending on your needs. Umbrella Insurance will also cover defense costs for an injured person should a personal injury or property damage happen and a lawsuit is brought against you.
  • Liquor Liability: This type of insurance helps protect businesses that sell, serve or distribute alcohol. For businesses, this type of insurance can help cover bodily injury or property damage claims caused by an intoxicated customer after they were served alcohol by a company or on a company’s premises.

 

To determine what coverage you need for your business, or to simply add on an enhancement, contact an independent agent today!

Please Note: This content is not intended to describe any specific coverage offered by MAPFRE Insurance. No coverage is provided, bound or guaranteed by this article. Available coverages, credits and discounts vary from state to state and are subject to eligibility criteria and policy terms/conditions, which will control in the event of conflict between this article and your insurance policy. For information about your policy, please review your individual policy contract and speak with your insurance representative.

MAPFRE Insurance® is a brand and service mark of MAPFRE U.S.A. Corp. and its affiliates, including American Commerce Insurance CompanySM (Cal. COA 4928-8), Citation Insurance CompanySM, The Commerce Insurance CompanySM, Commerce West Insurance CompanySM (Cal. COA 1372-2), MAPFRE Insurance CompanySM (Cal. COA 3039-5), and MAPFRE Insurance Company of FloridaSM.

Articles

How Do You File for an Auto Glass Repair Claim?

How Do You File for an Auto Glass Repair Claim?

A chipped, cracked or damaged windshield can happen any time of the year. Whether the damage is the size of a dime or a large "bullseye" crack, driving around with damage can compromise the safety of your windshield and also impair your vision. Fortunately, if you...

read more
Christmas Tree Safety

Christmas Tree Safety

You might like to display your holiday decorations for an extended period of time but things like Christmas trees can be fire hazards. Data collected by the National Fire Protection Association (NFPA) between 2015 and 2019 for the month of January show that 160 home...

read more
Filing a Personal Injury Protection (PIP) Claim

Filing a Personal Injury Protection (PIP) Claim

If you’re a driver in Massachusetts, there are four types of compulsory coverage, or mandatory car insurance requirements, vehicle owners must meet to legally operate a motor vehicle. One of those four required coverages is Personal Injury Protection, or PIP. Often...

read more