You know that protecting your company is a top priority as a business owner. You’ve worked hard to build your business, and you want to ensure it is protected in case of an accident or disaster. That’s where business insurance comes in.
There are many different types of business insurance, and the right policy for your company will depend on several factors, including the size and type of business, the risks involved in your industry, and your company’s financial situation.
Logistics Business Insurance Policy Options & Cost
The four most common types of insurance for logistics businesses are as follows:
- General liability insurance protects you from lawsuits arising from injuries or property damage resulting from your business activities. General liability insurance can also help protect your logistics business’ assets in the event of a lawsuit.
- Commercial property insurance can help reimburse you for lost or damaged property caused by fire, theft, or other covered events.
- Workers’ compensation insurance helps logistics businesses cover the costs of employee injuries or illnesses. This type of insurance can help businesses pay for medical expenses, rehabilitation costs, and other related expenses. Workers’ compensation insurance is required in all states except Texas. Workers’ compensation insurance typically costs between 1% to 1.5% of your total payroll costs.
- Business income insurance is sometimes called business interruption insurance or business continuity insurance. This insurance helps businesses recover from certain losses caused by events such as property damage, theft, or business interruption. This type of insurance can help businesses cover the costs of not being able to operate for some time. It can also help businesses pay for employee salaries, rent, and other ongoing costs.
Other types of business insurance to consider based on the specifics of your logistics business include:
- Product liability insurance is a type of insurance that helps businesses protect themselves from lawsuits due to the products they sell.
- Professional liability insurance, also known as Errors and Omissions (E&O) insurance, helps professionals protect themselves from lawsuits.
- Employment practices liability insurance, also known as EPLI, helps logistics businesses protect themselves from lawsuits that may arise from the way they employ their staff.
- Cyber liability insurance, which protects you from lawsuits that may arise from a data breach or other cyber incident.
- Business identity insurance, which protects your business from theft or misuse of your company name or logo.
- Commercial auto insurance and commercial fleet insurance, which protect you from lawsuits that may arise from accidents involving employees while driving for work.
- Key person insurance or key man insurance, which protects your logistics business from losses that may arise from the death or illness of a key employee,
- Equipment breakdown insurance, which can help pay for the cost of repairing or replacing damaged equipment,
While this list of insurance options covers most logistics businesses, you may be required to purchase additional coverage depending on the specific nature of your logistics business. Speaking with an insurance company is important to determine which policies are right for your business.
The cost of business insurance will vary depending on the type and amount of coverage you purchase. However, business owners can expect to pay a few hundred dollars per year for general liability insurance.
It is important to talk to your insurance company to make sure you have the right coverage in place for your logistics company.
How Much Insurance Should a Logistics Business Have?
This is a difficult question to answer, as the amount of insurance you need will vary depending on the type of products/services you offer and the size of your company. That being said, most insurance experts recommend that business owners purchase enough coverage to protect their assets in the event of a lawsuit.
When shopping for liability insurance, ask your insurance company about the coverage limits and available supplemental coverage options.
In summary, business insurance is an important consideration for any business, but it is especially important for businesses in the logistics industry. There are various insurance options available, and the amount of coverage you need will depend on the specific nature of your business. Be sure to talk to your insurance company to determine which policies are right for you.