Do Businesses with No Inventory Still Need Insurance?

What types of commercial coverage does your business need?

If your business does not deal with the manufacture, distribution, or storage of inventory, then you might assume that you do not need business insurance.  However, this simply isn't the case.  All businesses, even service-based ones, need the protection that only commercial coverage can provide.  Even if your business does not deal with inventory, you will still need these coverages.

• Professional Liability

All businesses that offer their clients services need the protection offered by professional liability insurance.  Also known as Errors and Omissions (E&O) insurance, this type of policy is designed to protect a business if they make mistakes when rendering their professional services.  For instance, if you make a mistake that causes injury or property damage to a client or a third-party, then your professional liability insurance will offer coverage to address their losses and take care of your legal defense in the event of a lawsuit.

• Commercial Auto

Many service-based businesses have their employees travel to serve clients.  This is especially common for contractors, repairmen, IT professionals, and so on.  Whether your employees travel in company vehicles or use their own cars to get to their clients, you need to protect them with the right commercial auto insurance.  This type of insurance will ensure that the medical, repair, and legal costs associated with a car accident do not come out of your employees' pockets or your business's accounts.

• Commercial Property

Even though your business does not have inventory or manufacturing equipment to take care of, you should still secure commercial property coverages.  This coverage is especially necessary if your business works out of a physical building or storefront.  Commercial property insurance will protect your business's physical structure against fires, natural disasters, theft, and vandalism. These are just a few of the coverages that service-based businesses need.  Curious to know which other types of insurance your business needs?  If so, then contact the experts at Club Agency Insurance Brokerage in Garden City, New York.  Our dedicated team is eager to assist you with all your coverage needs today.