As a business owner, protecting your company is a top priority. One way to do this is by carrying a certificate of insurance (COI). It can help cover almost all the costs of damages or losses suffered by your business. It can also provide financial coverage if your business is sued.
There are many types of risk management available for businesses nowadays. The type of coverage you need will depend on the size and type of firm you have. You may need to purchase policies to protect your business entirely.
The cost of premiums can vary widely, so it’s essential to look around and compare rates before buying a policy. Be sure to ask about discounts for your company’s safety features or green initiatives.
What is a COI?
An insurance company issues a certificate to verify the existence of an insurance policy. Business owners require an insurance certificate that protects against liabilities incurred from accidents and injuries while conducting business.
Why Do You Need A COI?
A certificate of insurance verifies that a business has the coverage it claims to have. In addition, it gives details regarding the policy so that the client knows that the company has financial security.
What Is Included?
A COI has the following things included in it:
- Name of the insured
- Address and character of the insurer
- Type of policy and limits
- Expiry of the policy
- Nature of work done by the insured
- Other obligations on the part of the insurer
What Are The Most Common Business Insurances Used To Protect A Business?
Property
A commercial license protects a business’s property, such as a building, furniture, equipment, etc. However, natural disasters are acts of God and, therefore, not covered under any property insurance.
General Liability
This is a general insurance license that is recommended for every business. It protects the insurer from damages or injuries caused to a third party. These plans generally cover settlements, investigations, lawsuits, fees, medical expenses, etc. This type of rish management does not cover intentional acts.
Product Liability
If a business has to fight lawsuits filed due to damages caused by its product, this certificate can help provide security. This type of insurance generally goes into the details and specifics of the product and the potential risks.
Professional Liability
This commercial license is also known as an errors and omissions license. It covers a business against the negligence claims that arise due to failure of performance by the employees and the business enterprise. In addition, professional liability can protect a business from lawsuits and legal expenses due to faulty judgments or unsuitable recommendations.
Commercial Auto
A fully insured commercial auto license can protect a business from liabilities that may arise in case of an accident for companies that have many vehicles involved in their business operations.
Workers’ Compensation
This is a mandatory license in most states for a company having employees. In case of a work-related accident or an injury caused to an employee, this plan will help a business cover medical expenses, wages, etc. In addition, if an employee files a lawsuit against a company, it can help cover the costs incurred in defending such a lawsuit.
What Does Workers’ Comp Insurance Cover?
It usually covers work-related injuries and accidents or illnesses, covering financial expenses of the employees such as medical expenses, missed wages, and funeral expenses if required. However, all of these injuries and accidents must be work-related or on-site.
Conclusion
The day a business commences, it exposes itself to several risks. Various licenses can easily cover all possible risks discussed above. However, it is better to be safe and take all the precautions so that a business does not incur legal expenses or face lawsuits due to slight negligence or errors.
