Businesses must maintain appropriate levels and types of insurance to protect their financial interests. As a result, business owners must be aware of all available and advisable types of insurance to procure for their businesses. An Arizona business lawyer at Provident Law® can review insurance and related business law matters to give you legal advice on business formation. Together, we can ensure that your business has the protection it needs.
Why Your Business Needs Insurance
Proper insurance coverage is a necessary business operating cost that all business owners can and should maintain. Natural disasters causing property damage, employee injuries while on the job, and financial recessions can all lead to the implosion of your business and the loss of your investment. Without adequate insurance coverage to address these types of issues, you put your financial interests in your business at risk.
Liability Insurance
General business liability insurance covers your costs if a customer or client sues you for any harm that they claim your business caused. For instance, if a customer slips and falls in or outside your store, general liability insurance will cover the claim if that customer later sues you. Depending on your needs, you also might need employment practices liability insurance and product liability insurance.
Your profession also may require you to carry a certain amount of professional malpractice insurance. Professionals such as lawyers and doctors must carry malpractice or professional liability insurance, which covers expenses if a client or patient accuses them of providing services that caused them harm.
Commercial Property Insurance
Most businesses own real estate, inventory, or some type of valuable property. Therefore, insuring this property against fire, flood, theft, or other similar issues is critical to your continued business operations. This type of insurance provides coverage to repair or rebuild any damaged or destroyed structures and replace lost company property.
Commercial Auto Insurance
Depending on the nature of your business, your company may own one or more vehicles. For instance, if you provide deliveries to customers, perform in-home services, or transport large amounts of inventory or orders, you likely have a company-owned vehicle. Maintaining a personal auto insurance property is insufficient and will not provide coverage if you are using the vehicle in the operation of your business. Therefore, commercial auto insurance is a must to guard against your business being liable for property damage and bodily injuries if your vehicle is involved in an accident.
Business Interruption or Income Insurance
Business income or interruption insurance provides you with coverage for your lost business income if a natural disaster strikes, and you are temporarily unable to operate your business. While this type of insurance is not as common as others, it can help protect you from weeks or months of lost income due to an unexpected disaster.
Cyber Liability Insurance
Almost everyone has received notice from one business or another that their personal information has been compromised or stolen in a data hack or leak. You can avoid these problems in your business by purchasing cyber liability insurance to cover data breaches and cyberattacks.
Workers’ Compensation Insurance
Arizona business law requires all businesses with one or more employees to maintain workers’ compensation insurance. This type of insurance pays for medical bills, lost income, and other injury-related expenses for injured employees.
Other Insurance Related to Employees
Based on the size and nature of your business, you may opt to provide certain types of insurance coverage for your employees. Common types of insurance available to employees through their employers may include health insurance, life insurance, and disability insurance. Employers may bear some or all the costs of these types of insurance, or employees may share in or be totally responsible for their costs.
Contact Us Today for Help with Your Business Law Issues in Arizona
The business lawyers of Provident Law® have over 250 years of combined legal experience representing business clients in various legal matters. We aim to build a long-term relationship with you as we work together to address and solve your most complex legal issues. Contact a business attorney in Arizona today by calling (480) 388-3343 or reach out to us online to schedule a time to see what we can do for you.