Prestige Professional Management
Your Consumer Resource Specialist

Business Insurance
Why do you need business insurance?

Even when money is scarce, or revenues are really down, small businesses need insurance. Businesses that are underinsured or without adequate coverage may face financial problems or even bankruptcy. There are several types of business insurance:


Business Owner's Insurance

A business owner insurance policy offers small and midsize companies broad protection against financial loss. If a property is damaged by fire or flooding, the insurance company may pay the cost of repairs. It also might cover the owner’s legal liability for bodily injury to someone if the business is held accountable.


​What the insurance covers will be specified in the policy. An all-risk policy, which covers every eventuality except for specifically cited exclusions, offers more protection than a named perils policy, which only covers specified risks. Risks that may be covered in a business owner’s policy include:

  • Fire
  • Flooding
  • Other sources of property damage
  • Theft
  • Bodily injury
  • Business interruption for specified reasons


Product Liability Insurance

This type of insurance may be necessary if businesses sell a product that has the potential to injure a user. Selling a product that injures someone, even if the business did not design, manufacture, or distribute the product, requires legal liability that injury should be covered.


Commercial Insurance

A commercial insurance policy may be required if your business is larger and more complex than a single-owner or partnership retail operation, service business, or professional practice. Businesses that may require a commercial insurance policy include manufacturers, restaurants, and commercial real estate operators. A commercial policy is typically more expensive than a business owner's policy because the risks are higher and potentially more costly to the insurance company.


Professional Malpractice Insurance

Professions that give advice or provide care services may require professional malpractice insurance to protect themselves from substantial liability in the event of a lawsuit and include:

  • Medicine
  • Dentistry
  • Law
  • Accounting
  • Advertising
  • Financial planning
  • Occupational therapy
  • Computer analysis
  • Journalism
  • Psychotherapy
  • Real estate

Insurers calculate premiums for malpractice insurance based on actuarial data for risk, dollar damages, and other relevant factors. Prices vary widely depending on the profession, its subspecialties, and the specific services or advice offered. If you plan on running a successful business, then you should absolutely plan on getting business insurance. 


Without this coverage, you may end up having to pay out-of-pocket for property damage, accidents, or lawsuits from unhappy clients. Needless to say, all of these very-real possibilities can be devastating for both your business and your personal finances if you don’t have business insurance. Don't delay another day. Get business insurance today!