How Business Insurance Works

16 Jul 2020 Insurance Products

Business insurance can help companies protect their financial assets, physical property, and intellectual ideas by shielding them from losses related to their business activities. Understanding how business insurance works will help you select the right types of insurance for your company’s needs. If you are unsure about which insurance products will work best for your business, the professional team from Mountainview Insurance can help.

What is Business Insurance?

Business insurance protects businesses against financial loss. Since every business model and industry has its own unique risks, business owners will need to work with an insurance provider to tailor their coverage to their specific needs. When choosing a business insurance policy, you should take into consideration:

  • The size of the company
  • How many employees are on staff
  • The nature of the products being made, or services offered
  • The types of work vehicles used
  • The types of materials handled
  • The working conditions at the company

How Does Business Insurance Work?

Business insurance works by creating a contract between a business and an insurance company in which the insurance company agrees to share the business’ risks in exchange for regular insurance premium payments. In the event that the business experiences a loss that is covered under the insurance policy, the insurance company will cover the financial losses up to the maximum limit set out in the policy. In most cases, the business will have to pay a deductible before the insurance coverage will kick in and it can be reimbursed.

What Does Business Insurance Cover?

Some of the most common types of business insurance policy options include:

  • General Liability Insurance—Protects the business from claims that involve bodily injury, property damage, or medical expenses resulting from products, services, or general business operations.
  • Property Insurance—Covers the loss, damage, or theft of the business’ property and its contents as the result of a natural disaster, fire, storms, accidents, and vandalism.
  • Product Liability Insurance—Protects against losses stemming from a defective product that causes injury or harm.
  • Professional Liability Insurance—Protects a business against mistakes, negligence, and malpractice related to the services provided to clients.
  • Workers Compensation—Covers a business’ employees if they become sick or are injured on the job.
  • Commercial Vehicle Insurance—Covers the vehicles and their drivers for collisions, liability, personal injury, and damage of property.
  • Loss of Income Insurance—Protects the business in the event of an emergency that results in the company losing revenue.
  • Home-Based Business Insurance—Covers business equipment, supplies, and other work property kept in your home office.

If you would like to learn more about how business insurance works, or if you are interested in one of their business insurance policies, please contact Mountainview Insurance at 604-557-0255 or by filling out a contact form on their website.