Business Insurance
Business insurance is a type of insurance coverage purchased by businesses, though the specific type of business insurance policy purchased by the business is depended upon that company’s needs as well as on the type of goods or services that business provides.
There are several different types of coverage a business insurance policy may include. These include:
- Professional Errors and Omissions Liability Coverage
- Cyber Liability Coverage
- Warranty Coverage
- Publishers Liability Coverage
- Advertising Injury Coverage
- Personal Injury Coverage
- Contingent Bodily Injury
- Business Income Coverage
- Property Coverage
- Cyber Extortion
- Directors and Officers Liability
- Employment Practices Liability
- Crime Coverage
Professional Errors and Omissions Professional Liability Insurance
Professional Errors and Omissions Professional Liability insurance, often referred to simply as E & O, protects a company against litigation costs when facing charges of negligence or inadequate performance. This type of business coverage is beneficial to any sole proprietorship, partnership, or corporation that provides a service.
Intellectual Property and Liability Coverage may also be included within an E & O policy. This type of business insurance protects the company’s intellectual property, such as domain names, trademarks, and copyrights.
Cyber Liability Coverage
Cyber liability coverage within a business insurance policy provides coverage to a business that maintains a website. This includes covering areas such as network security, virus, and cyber extortion.
Warranty Coverage
Warranty coverage within a business insurance policy covers the expenses of living up to warranties a business provides to its customers. Warranty coverage pays the expenses that are not covered by E & O coverage, as E & O does not cover claims that result from failing to withhold contractual provisions.
Publishers Liability Coverage
Publishers liability coverage protects a publisher when a dispute arises regarding content contained within books, brochures, catalogues, and manuals.
Advertising Injury Coverage
Advertising injury coverage protects the insured in the case of injury resulting from misappropriation of advertising ideas, violation of privacy rights, libel, slander, and infringement of copyright when advertising services or goods. The Internet is excluded from coverage by most business insurance companies.
Personal Injury Coverage
Personal injury coverage protects the insured against forms of injury other than body injury. This can include wrongful entry, wrongful eviction, false arrest, false detention, libel, slander, malicious prosecution, and violation of privacy rights that are not related to advertising or publishing.
Contingent Bodily Injury
Contingent bodily injury covers loss as the result of bodily injury that occurs to another person as the result of digital events. This type of coverage would be needed by a business that provides information that could cause a person to become injured if followed.
Business Income Coverage
Business income coverage covers the income that a person loses because of physical damage, such as the income lost while a business is being rebuilt after a fire.
Property Coverage
Property coverage covers the property and contents of the business in the case of fire or other peril.
Cyber Extortion
Cyber extortion covers the money that a business may pay for a ransom and, depending on the business insurance policy, may also pay for the costs of investigating and apprehending the extortionists.
Directors and Officers Liability
Directors and Officers liability covers the fiduciary duties of the business’s officers and directors when they are acting within those capacities.
Employment Practices Liability
Employment Practices Liability, often referred to as EPLI, provides coverage to the business in the event of claims made by employees regarding the violation of their legal rights. This can include sexual harassment, discrimination, and wrongful termination claims.
Crime Coverage
Crime Coverage protects the business against loss of securities, money or inventory that occurs as the result of a crime.
This is by no means an exhaustive list of the various types of business insurance policies a business may acquire. As such, it is important to talk to a professional in order to ensure the proper coverage is acquired.
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