What does business insurance cover?

In case an unfortunate event happens to a policyholder, the first thing he or she will want to know is exactly what the business insurance covers. What business insurance covers naturally depends on the policy subscribed, but also on the specific type of business insurance subscribed.

This is what the most common types of business insurances are supposed to - very generally - cover:

- public liability insurance covers all compensations following damages suffered by the customers of the policyholder;

- employer’s liability insurance covers all damages like bodily harm suffered by the employees within a policy holding company;

- professional liability insurance covers compensations following damaging consequences of ill-advised recommendations or designs made by a policy holding company for a client;

- business equipment insurance covers expenses related to the loss or theft of company equipment, or accidental damage to this equipment;

- tool insurance covers the expenses related to the replacement of lost, stolen or damaged tools necessary for production;

- credit insurance covers the insolvency of the clients;

- business stock insurance covers the accidental damages suffered by the stocks of goods in the company’s shop or warehouse, or their replacement if they are lost or stolen;

- business contents insurance covers the loss of material goods owned by the policyholder;

- goods in transit insurance covers all damages to purchased or sold merchandise while it is being shipped to the importer or reseller;

- building insurance covers all damages to the shop or office building;

- business interruption insurance covers the financial consequences of a business interruption caused by an unfortunate event, for example when machinery is accidentally brought to a halt;

- key person insurance is a kind of life insurance for key executives in the company, without whom business just can’t go on as usual;

- business travel insurance covers anything which may happen during a business trip.

But once again, what business insurance covers really depend on the insurance policy subscribed, so all policy holders should really check the fine print to find out the exact extent of the coverage.