5 Reasons Your Business Needs Property and Casualty Insurance

Property and casualty insurance protects small businesses from a wide range of threats, accidents, and losses. Failing to invest in insurance coverage can result in losing everything you have worked hard to build. 

Every business has different insurance needs based on location, industry, and risks. You hope you will never need to use your insurance coverage. However, having sufficient property and casualty insurance can mean the difference between weathering a disaster or accident and closing your business. George Salinas Injury Lawyers, rated among the best personal injury attorneys in San Antonio, explains all you need to know.

What Is Property and Casualty Insurance for Small Businesses in Texas?

Property and casualty (P&C) insurance is an umbrella term that describes various types of business insurance coverage. P&C includes liability insurance coverage and property protection coverage

Liability insurance compensates a victim for damages or harm caused by the negligence or wrongdoing of the insured. Examples of casualty insurance include:

  • Workers’ compensation insurance
  • General liability insurance 
  • Cyber liability insurance 
  • Errors and omissions 
  • Employment practices liability insurance (EPLI)
  • Commercial auto insurance coverage

Property insurance protects buildings and personal property and buildings from covered losses. Generally, property insurance covers losses from fire, natural disasters, theft, vandalism, and other similar catastrophes. 

Why Does Your Small Business Need Property and Casualty Insurance Coverage?

Having P&C insurance coverage can prevent costly financial losses because of unexpected accidents, injuries, and other events. Instead of paying claims out of pocket, the insurance company pays the claim. 

Five reasons to purchase property and casualty insurance for your business are:

Employee Injuries and Accidents 

Texas is one of the few states that does not require most private employers to purchase workers’ compensation insurance coverage. However, if you do not have workers’ compensation insurance, you are responsible for the costs and losses if a worker is injured on the job. Workers’ compensation insurance pays for medical bills, lost income, and death benefits for covered claims. 

Additionally, workers’ compensation insurance provides legal protection from lawsuits. Generally, employees covered by workers’ compensation insurance cannot sue an employer for a workplace accident. The worker is limited to workers’ comp benefits paid by the insurance provider. 

Damage to Personal Property 

Property insurance covers structures, inventory, equipment, and other business assets if a covered threat damages them. For example, suppose your building catches on fire, and you lose everything. 

Property insurance helps you replace these items instead of paying for them out of your pocket. Without property insurance, your business might not recover from a disaster.

Automobile Accidents 

Businesses can be liable for accidents involving their vehicles. Damages caused by a traffic crash can be substantial, especially when a commercial vehicle or truck is involved in the accident. 

Your automobile insurance coverage should pay economic damages (i.e., medical bills, property damage, lost wages, etc.). It also covers non-economic damages for pain and suffering. Your business could be liable for the victim’s injuries and damages without auto insurance. 

Someone Is Injured on the Premises 

Slip and fall accidents are among the most common premises liability claims against businesses. However, your business could be liable for other injuries that occur on your property. General liability insurance protects your business from liability for accidents and injuries on your property. 

You Make a Professional Error or Mistake

You might need errors and omissions insurance depending on the type of business you own. E&O insurance protects you from liability for harm and losses you cause because of a professional error. Errors and omissions insurance can help you withstand lawsuits from clients so you don’t lose your business. 

Read Property and Casualty Insurance Policies Carefully

Insurance policies contain exclusions to coverage. The insurance company will not be liable for the damages under those conditions. Therefore, read the entire policy to ensure you understand what is covered and not covered.

Also, you may have substantial deductibles for insurance coverage, and you might need to follow specific procedures to report a claim to preserve coverage. Understanding your business insurance policy reduces the chance that you will invalidate coverage or not have coverage that you need. 

What Should You Do if Someone Sues Your Business?

Contact your insurance provider immediately to notify it of a potential claim. Document the facts and circumstances of the accident or situation, including taking photographs of the accident scene, preserving video evidence, and obtaining the names and contact numbers of witnesses. 

Your insurance provider should hire a lawyer to respond to the lawsuit. Still, you may want to contact a Texas personal injury lawyer to learn about your potential personal liability.