Whether it is due to previous claims, excessive risk or geographical concerns, having an application for business insurance refused can be a worrying time for an owner. Your company could be in serious financial peril if it is not protected from loss, liability and legal action. Thankfully, there are specialist insurance providers that are prepared to offer coverage to businesses that are deemed to be high-risk propositions; it is merely a matter of finding them.
What Are the Different Types of Business Insurance?
There are four main types of business insurance available in the USA. Standard insurance will cover a range of named perils. However, an all-risk policy will provide coverage for all eventualities, unless the policy specifically names perils that are not included. All-risk policies provide business owners with peace of mind, but they are more expensive and could be refused to high-risk businesses.
Business Property Insurance
A number of potential hazards are covered with business insurance, including fire, flooding, theft, bodily injury and loss of income due to the occurrence of an insured peril. Exactly what is covered can vary depending on the state and the insurance provider, so careful scrutiny of policy documents is essential. This form of insurance will usually also include coverage for essential business equipment, such as computers and photocopiers.
General Liability Insurance
General liability insurance covers the costs of legal action brought about as a result of personal injuries, accidents and claims of negligence. Personal injury claims include those for actual bodily harm, slander, libel and damage to personal property.
Product Liability Insurance
Product liability insurance is essential for businesses that sell, manufacture or distribute retail products. For instance, the manufacturer of a defective bicycle that results in a rider's injury may be held liable for actual and punitive damages. Without product liability insurance, that business could be faced with crippling legal costs. The amount of insurance you should consider will depend on what you're selling. However, companies with a record of defending litigation could face very high premiums, and in some cases, the complete denial of coverage.
Professional Liability Insurance
This form of insurance will cover costs related to professional malpractice. Some insurance providers will refer to this type of coverage as 'errors and omissions' insurance. It provides coverage should any of your customers or clients take legal action as a result of suffering harm or injury due to negligence or errors in judgment. Doctors and several other medical practitioners are forced to have professional liability insurance as a condition of their right to practice.
How an Experienced Insurance Agent Can Help
If your business has recently been refused insurance, don't run the risk of trying to operate without it. While you may look upon a refusal as an opportunity to save your company some money, insufficient insurance could put the future of your business at risk. While many of the mainstream insurance providers may have already turned you down, other companies can utilize their vast knowledge of the industry to put you in touch with providers that specialize in high-risk or niche insurance coverage. They'll assess your business' particular needs and help you find the policy that best suits you.
Having trouble finding coverage? Call Integrity Network Insurance Group, LLC at 512-989-6006, and one of our expert agents will be happy to discuss the specifics of your Round Rock Business Insurance.