There are three primary types of Florida business insurance
that company owners should consider to protect themselves in the event of
catastrophe or liability. The first is known as commercial liability insurance,
the next is known as fidelity insurance, and the other is known as business
interruption insurance.
Commercial Liability Insurance
Commercial liability insurance is designed to cover claims
against the business by third parties. In most cases, these claims have to do
with injuries that visitors sustain while on the premises or injuries to
individuals for which the company could be held liable, such as a defective
product. In these cases, the owner of the business is held responsible for the
injury if the injured party can prove that the company was at fault. This type
of Florida business insurance is carried by most companies and is considered
very important. Without it, a business could almost certainly go under in the
event of a serious liability—even if it was unintended.
Fidelity Insurance
Another type of Florida business insurance that is important
for business owners to consider is fidelity insurance. Rather than protecting
against liabilities that could be created by the business, this type of
insurance protects the company in the face of dishonest employees. It covers
the unauthorized activity of these employees, protects assets and even helps to
mitigate fraud and technology risks. Businesses often cover people such as
tellers, cashiers and those who have access to very sensitive information with
these policies. Without this insurance, the business owner could be responsible
for providing restitution for such issues out of pocket.
Business Interruption
Insurance
When a business is forced to stop operating for one reason
or another, this can have some dire consequences. Loss of income, loss of
customer base and more can have a detrimental impact. This type of Florida
business insurance is designed to make up for the loss of income that comes
from a temporary cessation of operations and help to restore the business to
its prior state. As an example, if a hurricane damages a manufacturing
facility, then the insurance on the property will help to pay for actual damages.
However, only business interruption insurance can help to make up for the lost
income during this time.
Determining the
Necessary Insurance Types
Not every business needs all of these various types of insurance.
Most businesses can certainly benefit from commercial liability insurance since
there are just so many things that could potentially occur. However, as
mentioned before, fidelity insurance is only really necessary for larger businesses
that tend to hire outside individuals to handle large amounts of cash or very
sensitive information. Finally, business interruption insurance is often a
great idea for mid-sized to large companies which have incomes that could be
seriously affected by unforeseen circumstances. It is sometimes even a good
idea for small home-based businesses, as well.
If you have questions regarding what sort of Florida
business insurance is best for you, contact your insurance agent. Determining
the best policy for you is often as simple as reviewing your business, the
products and services it provides, and the number and type of employees it
utilizes.
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