3 key forms of business insurance
Accidents can happen to anyone. This may be particularly worrisome when a company is just starting out or planning to expand.General liability insurance for businesses
General liability insurance for businesses covers bodily injuries and material damage to third parties caused by the company’s activities or products, for example.
Business interruption insurance
Business interruption insurance helps companies secure their financial performance even in the event of significant property damage.
Legal expenses insurance for businesses
Legal expenses insurance covers legal expenses in disputed civil cases, criminal cases and non-contentious civil cases.
General liability insurance for businesses
General liability insurance for businesses covers bodily injuries and material damage to third parties caused by the company’s activities or products, for example. Once it is clear who is liable in any situation, both the business owner and customers can have peace of mind. If you are planning to sell the company, liability insurance offers a clear advantage for the seller. Future buyers will not be held financially liable for the company’s past mistakes.
The most common types of liability insurance are business liability insurance and product liability insurance. Business liability insurance covers damages that occur during work performed for a client. As its name implies, product liability insurance covers damages caused by products.
‘Business liability insurance is a policy that all companies should have, whatever the nature of the activities and the line of business. A continuously changing business environment, new regulations and digitalisation impose new needs also for the insurance-based risk management of companies,’ says Timo Toimi, Senior Underwriter at Pohjola Insurance.
Business interruption insurance
Few companies are financially strong enough to cope with problems caused by losses such as fire or water damage without assistance.
Business interruption insurance helps companies secure their financial performance even in the event of significant property damage. Business interruption insurance covers damages such as profit losses caused by a sudden interruption of operations. Business interruption insurance helps companies cover the costs of moving to temporary premises.
‘For example, after a fire at a vehicle inspection station, business interruption insurance covered both immediate profit losses as well as moving expenses to and higher lease at temporary premises,’ says Jani Salonen, Senior Underwriter at Pohjola Insurance.
When considering the need for business interruption insurance, think about how the company would fund its fixed expenses if all sales were to be interrupted by a loss.
‘It is also advisable that businesses evaluate whether their operations can be moved to new premises and how long such a move would take,’ Mr Salonen adds.
