Business Insurance You Didn't Know You Needed

Business.com / Insurance / Last Modified: February 22, 2017

The limits of your regular insurance can cost your business thousands of dollars, so be sure that you have all the protection you need.

You may think that your business or property coverage is sufficient to protect your business from damaging events, but there are many situations where extra insurance is needed. The limits of your regular insurance can cost your business thousands of dollars, so be sure that you have all the protection you need through the purchase of these specialized forms of coverage.

Events Insurance

Is your company holding a special event like a party or trade show? Will you be renting a special venue or serving alcohol? Special events insurance can protect your company from damages incurred through personal injury, event cancellation, property damage, and even glitches that take place during an otherwise successful event.

  • Event cancellation insurance covers damages like lost rental deposits and lost income when an event you're planning is unexpectedly cancelled or postponed. It also covers losses that occur during an otherwise successful event -- if several vendors fail to appear at your trade show, for example, this insurance covers the loss of their deposits.
  • Event liability insurance protects your business from financial responsibility should someone be injured during your event. Some rental venues require that you purchase this insurance. If you plan to serve alcohol, this insurance is necessary.

Commercial Vehicle Insurance

The commercial vehicles used by your business are held to different insurance requirements than your personal vehicle. These requirements vary state by state and are contingent on a number of factors.

  • The type of vehicle, the intended use, the number and quality of drivers, the number of vehicles in the fleet, and a number of other factors go into determining what kind of coverage your commercial fleet needs.

Fidelity/Crime Insurance

Believe it or not, losses to your business due to crime are not usually covered by most property insurance policies. Fidelity, or crime, insurance will protect your organization from loss of money, securities, or inventory as a result of crime or employee dishonesty.

  • Security coverage pays for losses due to theft, disappearance, or destruction of company property and funds. Covered events include embezzlement, forgery, robbery and burglary, counterfeiting, wire transfer fraud, and computer fraud.
  • Employee dishonesty coverage covers employee embezzlement and theft. The average US business loses 6% of total annual revenues -- roughly $9 per employee per day -- to employee fraud (Association of Certified Fraud Examiners).

Travel Insurance

If you or your employees often travel on behalf of your company, then business class travel insurance may be necessary -- especially if you travel internationally. Travel insurance usually offers emergency medical care, trip cancellation/interruption coverage, and travel assistance.

Auto Rental Insurance

Your personal auto insurance policy, as well as the credit card used to pay for the rental, can often cover the cost of repairs to auto rentals. However, you still have to pay deductibles and deal with premium increases in the event of an accident.

  • Unless your policy offers primary insurance coverage for rentals, it may be more cost-effective and less of a hassle to purchase the rental company's collision damage waiver. It frees you from the cost of any repairs, loss of business, and diminution of value incurred during your rental.

Look into the many specialized insurance options available to your company. Depending on what kind of business you operate, how often your employees travel, and what kind of coverage your property insurance offers, you may need to purchase extra coverage to protect your business in the event of crime or accidents.

Photo credit: cary-ins.com

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