Things you need to know
The most common types of commercial insurance are property, products and public liability and employers' liability. In general, property insurance covers damages to your business property; products and public liability insurance covers damages or injury to third parties; and employers' liability insurance covers your legal liability for death of bodily to your employees. Depending on your business, you may want additional specialized coverages. Listed below are some of the different types of business insurance.
Property insurance pays for losses and damages to real or personal property. For example, a property insurance policy would cover fire damage to your office space. You can purchase additional coverages for business property, including:
Business Interruption Insurance
Business interruption insurance covers lost income and expenses resulting from property damage or loss. For example, if a fire forces you to close your doors for two months, this insurance would reimburse you for salaries, rents, and net profits that would have been earned during the two-month period.
Provides coverage for the loss of money due to robbery or theft as follows:
- Loss of money in transit
- Loss of money from the insured's premises during business hours
- Loss of money from the insured's safe or strong room
Provides coverage for theft losses (i.e. theft following upon an actual forcible and violent entry of and / or exit from the premises) in respect of contents of offices, warehouses, shops, etc. and also damage caused to the premises
Glass insurance covers broken store windows and plate glass windows.
Boiler and Machinery Insurance
Boiler and machinery insurance, sometimes referred to as "equipment breakdown" or "mechanical breakdown coverage," provides coverage for the accidental breakdown of boilers, machinery, and equipment.
Builder's Risk Insurance
Builder's risk insurance covers buildings while they are being constructed. For example, a Builder's risk policy would cover losses if a windstorm takes down your partially constructed condominium complex.
Goods in Transit (Inland Marine) Insurance
Goods in transit insurance covers property in transit. For example, this insurance would cover damage to inventory being moved from your warehouse to a retail outlet.
Commercial leases often require tenants to carry a certain amount of insurance. A renter's commercial policy covers damages to leasehold improvements you make to your rental space and damages to the building caused by the negligence of your employees.
Fidelity Guarantee Insurance
Covers losses due to an employee theft of business property and money.
Liability insurance covers injuries that you cause to third parties. If someone sues you for personal injuries or property damage, the cost of defending and resolving the suit would be covered by your liability insurance policy.
Employers' Liability Insurance
An employers' liability policy will cover the employer for lawsuits brought against them by an employee who has sustained bodily injury as a result of the employers' negligence.
Public Liability Insurance
A public liability policy will cover you for common risks, including customer injuries on your premises. More specialized varieties of liability insurance include:
Errors and Omissions Insurance
Errors and omissions ("E & O") insurance covers inadvertent mistakes or failures that cause injury to a third party. The act must actually be an inadvertent error, and not merely poor judgment or intentional acts. For example, an E & O policy would cover damages arising from an insurance agent failing to file policy applications, or a notary forgetting to fill out notarizations properly.
Professional Indemnity (Malpractice) Insurance
Professional Indemnity (or Malpractice) insurance, pays for losses resulting from injuries to third parties when a professional's conduct falls below the profession's standard of care. For example, if a doctor makes a mistake that other doctors of his specialty would not have made, his patient might sue him. A malpractice policy will pay his defense costs and any judgment or settlement. Malpractice insurance is available for doctors, dentists, accountants, real estate agents, architects, and other professionals.
Commercial Motor Insurance
Commercial automobile policies cover the cars, vans, trucks and trailers used in your business. The coverage will reimburse you if your vehicles are damaged or stolen or if the driver injures a person or property.
Directors' and Officers' Liability Insurance
This type of insurance is generally purchased by corporations and nonprofit organizations to cover the costs of lawsuits against directors and officers.
NATIONAL INSURANCE BOARD
Compulsory insurance to cover work related injury in The Bahamas. Please see www.nib-bahamas.com for more information.