Important Facts About Texas Business Insurance Coverage!

Owning a business is the American dream for many, an important means of livelihood for owners and their employees. To protect this dream, business owners should invest in the right type of business insurance that will protect a company against liability due to accidents and other financial catastrophes. Without the right liability coverage from an experienced business insurance company, an incident could damage the business as a whole or even put the owner out of business. By working in conjunction with a good business insurance company, a business owner can ensure they are protected in all the necessary ways with the required business insurance policies.

General Liability Business Insurance

General liability coverage is business insurance that provides the basics of all liability coverage. This insurance protects a business from any lawsuits resulting from an accident or injury caused by a product, service, or employee; or occurring on business property, work sites, and certain other circumstances. This insurance also covers things such as medical expenses, legal fees, and other expenses related to a claim. General business liability insurance provides broad liability coverage and is considered the most important, fundamental insurance coverage that every business should have.

Professional Liability Business Insurance

Some businesses also need professional liability insurance, which provides extended coverage for a different type of damage. This business insurance protects a company from professional errors made by the business that cause a loss to someone else. This could be due to giving poor professional advice, missing deadlines, and other mistakes or accidents that cause someone else to lose money. Professional business insurance protects a business financially from these types of liability.

Commercial Auto Policies

Every vehicle must be covered under an active auto insurance policy; vehicles used for business purposes are no different. Of special importance is that business vehicles are insured under commercial auto policies, not personal auto insurance. Personal insurance policies will not cover a vehicle being used by a business, leaving business owners liable for any losses. Commercial auto insurance covers the business, vehicles used for business purposes, and the employees authorized to drive those vehicles in the event of an accident.

Workers Compensation Coverage

In most states, businesses who have employees are required to carry workers compensation insurance to cover medical expenses and lost wages if an employee becomes sick or injured as a result of their job. Workers compensation insurance is not required in the state of Texas; however, it is still highly recommended that a business carry it. Workers compensation coverage protects businesses against potential lawsuits should an employee become injured or sick and coverage is not available to them.

Although not every business requires all of these aforementioned types of business insurance, some companies may require all of them. When total coverage is essential, it is also possible for business owners to purchase umbrella insurance from their business insurance company. These policies provide all necessary coverage under one policy, which is tailored to the needs of the individual business. In either case, business owners should speak with an experienced business insurance company that can help them design the most suitable policy for their company. With the right business insurance, owners can operate their companies with the peace of mind in knowing that their dream is well protected!