Ostania aktualizacja 27 January 2023
When starting a business, we must ensure that we protect our new venture and save the time and money that we have invested. Appropriate insurance protects our personal assets against debts and financial liabilities. However, choosing the right type and number of company insurances is sometimes very difficult.
Types of policies
There are various types of insurance for companies . We can choose insurance against damage to our company’s headquarters (e.g. offices or factories). We can choose company insurance covering vehicles, equipment and supplies. We can also choose insurance to protect against losses arising from crimes such as theft or even employee fraud. There is also a type of insurance that protects the company in the event of a lawsuit.
Insurance for companies can be divided into four main categories.
- Company property insurance. Money is returned to any insured person who has suffered financial losses because his property (land, buildings, personal property) has been damaged or destroyed.
- Business liability insurance. Provides protection for payment for personal injury or property damage when the insured is legally responsible.
- Business car insurance. Provides protection for business vehicles against damage. As with private car insurance, this insurance provides compensation for vehicle damage resulting from fire or theft. Collision and accident costs are reimbursed. Liability insurance protects us if we are sued for an accident involving a company vehicle.
- Business umbrella insurance. Extends coverage of losses exceeding the limit of another policy or rules. Umbrella policy can also extend the extent of losses that are not normally covered by other policies.
In addition, the company’s insurance covers employee insurance, business discontinuation, group health insurance, group life insurance and disability insurance.
How to choose the right insurance?
Once we decide on the right type of insurance, we must choose the right amount. It should depend on our needs.
Let’s check carefully the offers of various insurance companies. Let’s get and compare many offers from reputable insurance companies and independent insurance agents. We can get offers online or in person. It is also often worth talking to the owners of other companies and asking who is insuring them and whether they are satisfied with the services offered.
Let’s compare the details exactly. Policies can have the same name but different scope. We must clearly define what is and is not covered by the insurance.
The insurance must take account of our professional situation. Small business owners often do business at home, but they must have a separate insurance policy. So let’s talk with the insurance agent about your specific professional situation. Then we will know what is best for us.
Common elements and exclusions
Before making the final decision about the type of insurance for our company, make sure that we have carefully reviewed the offer.
Let’s pay attention to several issues:
- annotations: specialized types of insurance are more limited in scope. They cover situations excluded from the general liability insurance policy. Sometimes you have to take into account additional costs so that we will be excluded from liability for damages. If liability involves a unique risk (e.g. professional accounting services), in addition to the comprehensive liability insurance policy, a specialized policy will be required.
- coverage of events: a comprehensive policy includes responsibility for any incident during this period. This means that the policy will cover liability for injury or damage to property which the insured did to the defendant when the policy was in force.
- expected or intended damages: damages that were subjectively expected or intended by the insured are excluded from the scope of insurance.
- intellectual property, advertising. Covering personal injury to others – as a result of defamation, slander, privacy violations, copyright, patent, trade name and trademark, and unfair business practices. Insurance companies narrowly define the definition of advertising to limit or block coverage. Let’s get acquainted with each comprehensive liability insurance policy in such situations.
- Data as property: damage coverage is only possible if the property is tangible and has physical damage. The debate about whether computer data is tangible and physical damage is staunch. So if we share computer hardware, software or programming services, make sure you know exactly what the insurance covers.
- real estate insurance. Some policies may cover comprehensive civil liability and separate protection of property damages belonging to the insured.