What Does Full Coverage Mean In Business Insurance?

Business insurance is critical in a wide range of commercial situations. Many organizations, though, want to carry full coverage insurance for commercial businesses. What does it mean to have full coverage, though? A commercial business insurance agent will tell you to set up a policy to cover these five potential issues.

Professional Liability

Especially if you perform work for others, professional liability coverage is important. Suppose a website design firm installs a shopping cart system for a client. However, it turns out the shopping cart software had an unpatched vulnerability for months.

Worse, the client's customers suffer losses and file chargebacks because the vulnerability led to the exposure of their credit card information. The client files a liability claim against the web design firm because the client believes the developers were negligent. If the company in this scenario has professional liability insurance, it should have sufficient coverage to pay out the claim.

Errors and Omissions

This is particularly important when it comes to insurance for corporations. If a corporation publishes financial data that triggers a loss for investors, for example, those folks may come after the company based on errors and omissions. The right insurance policy will provide coverage in scenarios where good-faith efforts to publish accurate data failed.

Premises Liability

If you have a building where a single worker, member of the public, or even delivery person visits, you need premises liability coverage. This covers things like the classic slip-and-fall accident. Suppose a janitor mops the floor in the lobby but forgets to put out a wet floor sign. Worse, a visitor slips on the wet floor and cracks several vertebrae. The victim could file a personal injury claim.

Inventory and Equipment Losses

Over the life of a business, it may lose inventory items or pieces of equipment to accidents, fires, water damage, or other incidents. Ideally, you'll carry a business insurance policy that covers those losses. Similarly, many retail businesses need coverage for losses due to theft or damage caused by clumsy customers.

Vicarious Liability

Most businesses have liability exposure through their employees, officers, contractors, and even designees. The law calls this vicarious liability.

Suppose you send an employee on an errand to pick up coffee and drop off mail. The employee ends up in a car accident, and the victim sues your company because the employee was doing something in furtherance of your enterprise. You should have an insurance policy that addresses this sort of scenario, however low-probability it might be.

Contact an insurance agent to learn more about business insurance