As a business owner, you’ll do everything possible to protect your company. For most businesses, a professional liability policy will be enough to protect their interests. However, no matter how comprehensive the policy is, it won’t cover everything. Before you purchase a new business insurance policy, make sure you understand precisely what the policy will cover. Here are a few of the most common types of damage that are excluded from standard business insurance policies.

Property Damage

Standard liability insurance protects against damage caused by a customer, client, or third party that’s unaffiliated with the business. This means repairs will not be covered under the liability insurance policy if you or an employee accidentally damage the building. However, the building’s property insurance will likely help cover the cost of repairs.

Professional Errors

Businesses should always strive to do right by their customers, but mistakes will happen. If you or an employee give bad advice or provide the customer with poor-quality service, liability insurance will not make amends. Business and professional errors are the responsibility of the business owner to address and pay for if necessary. Remember, forcing the customer to pay for repairs when the damage was done by your business is sure to earn a negative review and could damage your reputation in the long-run.

Employee Injuries

While liability insurance will cover the cost of medical treatments for customers injured on your property, it won’t do the same for employees. Instead, you’ll need to invest in worker’s compensation coverage. This insurance is legally required for businesses with over two employees and will cover the cost of medical treatment as well as a portion of the employee’s wages while they’re recovering. Failing to invest in worker’s compensation coverage as part of your business insurance policy puts you at risk for fines as well as costly out-of-pocket expenses. 

Want to update your business insurance to ensure your company is completely covered? Schedule a consultation with an insurance broker at P.D.H. Insurance Brokerage in Valley Stream, NY. Their dedicated team will work to help you find the best coverage possible, whether you’re just starting your business or have been in operation for several years. Learn more about their services online and call (516) 561-5227 to discuss your needs today.