ProComp HR, a subsidiary of D’Alessio, Tocci & Pell, is an essential partner for businesses seeking success by offering financial protection through comprehensive business insurance policies. As part of our client education series, we discuss how business insurance works, the various types of policies available, and the importance of risk management in minimizing losses.

The Advantages of Business Insurance

Business insurance offers financial protection when unforeseen losses occur, helping businesses recover faster. It also boosts credibility, as stakeholders and clients prefer working with financially protected companies. However, insurance is just one aspect of safeguarding assets and finances, and implementing good risk management practices is equally important.

Essential Business Insurance Policies

Each business faces unique risks, and there is no one-size-fits-all policy. The type of insurance needed depends on factors such as business activities, size, and location. Some essential coverages include:

    1. General liability insurance
    2. Professional liability insurance
    3. Product liability insurance
    4. Directors’ and officers’ (D&O) insurance
    5. Commercial property insurance
    6. Commercial auto insurance
    7. Health insurance
    8. Workers’ compensation insurance
    9. Business interruption insurance
    10. Cyber insurance

Top Risks Businesses Face

According to Allianz’s Risk Barometer report, the top risks businesses face are:

    1. Cyber incidents
    2. Business interruption
    3. Natural catastrophes
    4. COVID-19 outbreak
    5. Changes in legislation and regulation
    6. Climate change
    7. Fire and explosion
    8. Market developments
    9. Shortage of skilled workforce
    10. Macroeconomic developments

Business Interruption Insurance

The COVID-19 pandemic has highlighted the importance of business interruption insurance, which protects businesses from loss of income and additional costs due to unexpected events. However, whether this coverage should extend to pandemic-related losses remains a contentious issue.

Key Factors to Consider When Choosing Business Insurance

When selecting business insurance, companies should consider:

    1. Business structure
    2. Industry
    3. Types of risks
    4. Company size
    5. Business premises and vehicles
    6. Stock, equipment, and tools

Consulting an experienced insurance agent or broker is recommended to ensure the appropriate coverage is selected for each business’s unique needs.