Business Insurance

Dunagan Insurance Group

BUSINESS Insurance Policy
Business insurance is a general term used to describe various types of coverage available to protect business owners against losses. Just like insurance for a car or home, insurance for a business is designed to reduce the level of risk associated with daily operations.

Who needs it?
No matter how large or small your business is, you can benefit from this type of insurance. If a disaster were to halt your business operations, it would negatively impact your cash flow. In this scenario, if your business were insured, your insurance policy would kick in to help reduce the impact on your business.

How does business insurance work?
This type of insurance works by transferring and spreading the risk among several business owners. As you pay your insurance premium, the insurance company invests the money to create a larger pool. When your business files a claim, money is taken from the pool to pay for covered losses. The premium that your company will pay is determined using a unique mathematical formula that allows insurance companies to estimate the likelihood of various risks.

What are the different types of coverage?
There are many types of coverage that are available to businesses. Popular insurance types include:

  • Property insurance: This type of coverage protects the premises of your business from damage or loss. If a fire were to occur on your business property, a property insurance policy would help cover the costs of repairing, rebuilding or replacing the building and its contents.
  • Liability insurance: This type of insurance protects your business against any legal action that results from the negligence of your business or any of its employees. For example, if a customer slips on a wet floor and decides to sue the company, liability insurance may help absorb any judgment or penalty imposed by the courts.

Other types include:

  • Commercial auto insurance
  • Workers compensation insurance
  • Business Interruption insurance
  • Disability and life insurance

What are the major benefits of this type of insurance?
The major benefits of this type of insurance are risk management and business protection. When your business is properly insured, you minimize some of the risks associated with daily operation. Similarly, having the right types of coverage reduces the chances that a fire, theft or lawsuit will interrupt the operation of your business.