Types of Business Insurance

Understanding medical malpractice insurance

A specialized type of professional liability insurance, medical malpractice insurance provides coverage to physicians and other medical professionals for liability arising from disputed services that result in a patient’s injury or death. A majority of American doctors face at least one medical malpractice lawsuit in the course of their career.

 

Insuring aviation businesses

If you operate an aviation business, you’ll want to consider purchasing specialized aviation insurance. Because operating and servicing airplanes and helicopters entails numerous risks, several types of aviation insurance are available, including:

  • Aircraft insurance.
  • Helicopter insurance.
  • Pilot life insurance.
  • Insurance for airplane dealers, brokers and charter companies.
  • FBO (fixed-base operator) insurance—covering businesses that provide aircraft fueling, maintenance, instruction, rentals, hangar storage and so on.

 

Understanding crop insurance

Crop insurance is purchased by agricultural producers, including farmers, ranchers and others to protect against either the loss of their crops due to natural disasters, or the loss of revenue due to declines in the prices of agricultural commodities. There are two major types of crop insurance: multiple peril crop insurance (MPCI) and crop-hail insurance.

 

Multiple peril crop insurance (MPCI)

MPCI covers crop losses, including lower yields, caused by natural events, such as:

Understanding inland marine insurance

Don’t let the term “inland marine” confuse you. As opposed to “marine insurance,” which covers products when transported over water, inland marine insurance covers products, materials and equipment when transported over land—e.g., via truck or train—or while temporarily warehoused by a third party. Collisions and cargo theft are the two most frequent causes of inland marine losses.

Insuring marine businesses and cargo

If you operate a marine business or regularly ship cargo overseas, you should consider purchasing ocean marine insurance. The following types of businesses are especially exposed to maritime risk and may need specialized marine coverage:

Insuring against employee kidnapping and ransom

Unfortunately, it can sometimes be a very dangerous world. In some countries, kidnapping for ransom and business extortion have become a means for lawless individuals and gangs to make money. Quite aside from the personal trauma, the kidnapping of an employee can lead to significant financial losses, not only from ransom payments but also from associated costs such as business interruption, litigation, adverse publicity and long-term reputation damage. 

 

Product liability, recall and contamination insurance

Product liability

If your company designs, manufactures, distributes or sells a physical product—anything from toys to building supplies to macaroni and cheese—you’ll want to strongly consider purchasing product liability coverage. This coverage helps provide financial protection in the event that the use of your product results in property damage, personal injury or death. Product liability coverage can be added to your general liability insurance policy or purchased as a stand-alone policy and can be tailored to the types of risks to which your business may be exposed.

Directors and Officers insurance

While business insurance policies by definition provide coverage for the business itself, individual company officers may still be personally exposed to financial losses resulting from a lawsuit. To protect your company’s leadership, you may want to consider purchasing directors and officers (D&O) liability insurance.

Employment practices liability insurance

Numerous state and federal laws provide job candidates and employees with protections from discrimination and other unfair workplace practices. The number of employee lawsuits has increased in recent years, and any size business is vulnerable to this type of risk. Small businesses can be especially vulnerable because they are less likely to retain employment attorneys or have detailed employment policies and training programs.

 

Professional liability insurance

Do you or your business provide professional services or advice to other businesses or individuals? Could your counsel or service lead to losses by your client for which you could be held responsible? If so, you’ll likely want to purchase professional liability insurance, also known as errors and omissions insurance (E&O).

 

Claims not covered by general liability insurance that are covered by professional liability insurance include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

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