Every business is different, which is why there is no one-size-fits-all insurance product for every company. However, business insurance usually consists of one or more of these three main components: property, liability, and business interruption coverage. Below is a basic guide on what you need to know about each of these policies.

The Components of Business Insurance

1. Business Property

Property insurance is just as important for business owners as it is for homeowners. If your office building or warehouse is damaged or destroyed due to fire, insurance can help pay for the repairs. Property insurance also protects you in the case of theft and vandalism as well as other perils, including hail damage to your commercial roof.

2. General Liability

Business liability insurance protects your company’s assets if someone gets hurt on your property or as the result of negligent actions by your employees. Liability insurance is an important component of your commercial auto insurance policy as well. It can pay for medical costs as well as legal fees if your company is taken to court.

3. Business Interruption Coverage

As a business owner, you can purchase business interruption coverage, which helps replace your income in certain situations. For example, if your buildings can’t be used to create products or serve customers due to a fire, your insurance may cover rent for a temporary workspace.

4. Additional Coverage Options

It’s important to design your company’s insurance package around the needs of your business. For example, business owners may also require product liability or professional liability coverage, equipment coverage, and worker’s compensation insurance. Additionally, a company may need data breach or flood insurance, depending on its operations and place of business.

If you’re not sure which type of business insurance you need, the experienced agents at Alcorn Insurance Agency in Chama, NM, can help. With over 35 years of experience, they know how to match the right coverage options with their customers. They work with over 50 different insurance companies to help you protect your business. Visit the website for more information on their services and call (575) 756-2197 to get a quote.