How Does Your Industry Impact What Business Insurance You Will Need?

As a business, you are likely aware of the important role insurance plays in your risk management and loss control efforts. However, while general awareness of your need for coverage is a good first step, you should also understand that all businesses may require different types of insurance. Many aspects of your organization’s unique circumstances can significantly influence its coverage needs, with industry or type of business being among the most paramount factors.

The Types of Available Coverage

There are many types of insurance that may be purchased by various commercial entities. The following may be particularly common among businesses across many sectors:

• General liability insurance
• Commercial property insurance
• Professional liability insurance
• Workers’ compensation insurance
• Business interruption insurance
• Commercial auto insurance
• Cyber liability insurance
• Employment practices liability insurance
• Commercial umbrella insurance

What Your Industry May Mean for Your Business Insurance Needs

There are several things your company should consider when assessing its coverage needs and ensuring it has compiled a business insurance portfolio that can provide sufficient financial protection. As your organization ensures adequate coverage, consider the following factors:

• Requirements—Some types of insurance are required by laws or industry standards. For example, if you operate in the transportation or trucking industries, commercial auto insurance is often legally required. Failing to secure a policy could not only leave you vulnerable to financial losses but also potentially incur costly noncompliance fines. Similarly, the health care sector is generally required to carry professional liability insurance, also known in the industry as medical malpractice insurance.
• Risk levels—Although formal requirements may not always exist, some industries should account for greater risk levels and the potential for greater financial losses. For instance, construction firms, food distributors, medical companies and other businesses with particularly high liability risks may want to prioritize commercial umbrella insurance to ensure a secondary form of coverage should the limits of other policies be exhausted. In the same vein, businesses working with sensitive data, such as social security numbers and banking information, may need cyber liability coverage.

We’re Here to Help

Contact Dean Olson Insurance Agency today to learn more about business insurance options and ensure you have the right coverage for your industry.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.