Business insurance offers coverage to contractors that have various objects of activity and want to protect their business and budget. There are types of insurance required by the law in most of the states (liability insurance, workers compensation, commercial auto insurance) as well as optional policies.
What is insured?
Business insurance can be customized, according to the needs of each contractor. You can choose for what risks your business should be covered, so that you get full protection, adapted to your business and location.
In order to allow you to dedicate yourself exclusively to business management, insurers offer different types of coverage, created especially for the protection of the components essential for carrying out your activity:
- buildings and other constructions
- heating installations, fixed electrical installations, air conditioning systems
- equipment, machines, tools
- furniture, office supplies, electronic and electro technical equipment
- stocks of goods and circulating means, raw materials, finished products or in progress
- goods in transit
Your employees will also benefit from protection.
Business insurance can fully protect you, if you choose adequate policies, according to the specific of your activity. Risks covered include several categories:
Protection for buildings, equipment, machinery, materials, goods that may be exposed to risks such as:
- Fire, explosion, falling objects
- Vehicle collisions
- Damage to pipes, sewerage or central heating installations
- Storm, lightning, flood, landslides, earthquake, snow
- Theft, vandalism, political risks
- Financial losses as a result of the interruption of activity, following a disruptive event
- Sudden or unforeseen damage or destruction, caused by internal causes, of machines and equipment
- Accidental damage or destruction of fixed or portable electronic equipment
- Destruction, loss or theft of goods and products during transportation
Protection of clients, employees, as well as third parties who interact with your business and may suffer damages resulting from personal injury and/ or other destruction or loss of property, caused by unintentional actions, a poor state of the building, things or animals that belong to you and for which you are responsible etc.
Protection against other risks to which your employees may be exposed, such as:
- Temporary incapacity for work (hospitalization, medical leave, surgery)
- Invalidity, as a result of work accidents and occupational diseases
- Death, as a result of accidents
Additional clauses for which contractors can opt
Depending on the object of your activity, next to the basic coverage you can choose one or more of additional clauses that will increase the protection offered by the business insurance:
- Coverage of electrical damage
- Coverage of portable equipment
- Coverage offered in the event of falling or collapsing stocks
- Compensation offered in advance
- Coverage for business downtime
The functions of business and contactor insurance
- Financial compensation for losses caused by certain risks
- Prevention of damages, which can be achieved by financing certain risk prevention activities and even educational programs for the insured
- Financial function – The insurance companies invest the money in the form of insurance premiums, increasing the existing availabilities
- Saving money and protecting the budget
- Reducing costs related to social protection – Insurance companies help the states when it comes to social and medical assistance, compensation for work accidents etc.