Coverages

Business Insurance is a broad term that refers to various types of coverage designed to protect a company from financial losses due to unexpected events. These events can include property damage, legal claims, employee injuries, data breaches, and more.

Business insurance can be customized based on the size, industry, and specific risks a company faces. Common types of coverage include:

• General Liability Insurance – for third-party injuries or property damage
• Commercial Property Insurance – for damage to buildings, equipment, or inventory
• Workers’ Compensation Insurance – for employee injuries on the job
• Commercial Auto Insurance – for vehicles used in business operations
• Professional Liability Insurance – for claims of negligence or mistakes in services
• Business Interruption Insurance – for income loss due to a temporary shutdown

In short, Business Insurance helps safeguard your company’s assets, employees, and operations, giving you peace of mind and stability to keep running your business even when the unexpected happens.

General Liability Insurance

General Liability Insurance is a type of business insurance that provides coverage for common risks that can arise in day-to-day operations. It helps protect a business from financial losses due to:

• Third-party bodily injuries (e.g., if a customer slips and falls on your premises)
• Property damage (e.g., accidentally damaging a client’s property while working)
• Personal and advertising injury (e.g., libel, slander, or copyright infringement in your marketing)

This insurance typically covers legal costs, medical expenses, and settlements or judgments if your business is sued. It’s one of the most essential types of insurance for businesses of all sizes and is often required for leases, contracts, or licenses.

In short, General Liability Insurance protects your business from unexpected costs that could arise from accidents or claims made by others.

Professional Liability Insurance

Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, is designed to protect businesses and professionals who provide services or expert advice. It covers claims made by clients for losses due to mistakes, negligence, or failure to deliver services as promised.

This insurance typically covers:

• Legal defense costs – even if the claim is unfounded
• Settlements or judgments – if you’re found liable for professional errors
• Claims of negligence, misrepresentation, or inaccurate advice

It’s especially important for professionals such as:

• Consultants
• Accountants
• Architects
• Engineers
• Lawyers
• Real estate agents
• IT professionals
• Healthcare providers (in which case it’s often called malpractice insurance)

In short, Professional Liability Insurance protects your business from costly legal battles and financial losses if a client claims your services caused them harm or didn’t meet expectations.

Errors and Omissions Insurance (E&O Insurance)

Errors and Omissions Insurance is a type of professional liability insurance that protects businesses and individuals who provide professional services, advice, or expertise. It covers the cost of claims made by clients for mistakes, oversights, or failures in the services you provided. E&O Insurance typically covers:

• Negligence – if you’re accused of not meeting industry standards
• Errors or omissions – mistakes or missing important steps in your work
• Misrepresentation – providing misleading information
• Legal defense costs – including attorney fees, court costs, and settlements

In short, Errors and Omissions Insurance protects your business from lawsuits and financial losses resulting from professional mistakes or service failures—whether you actually made an error or are just accused of one.

Umbrella Insurance

Umbrella Insurance is a type of liability insurance that provides extra protection beyond the limits of your standard insurance policies, such as general liability, auto, or homeowners insurance. It covers:

• Lawsuits and legal fees – if you’re sued for damages that exceed your other policy limits
• Bodily injury liability – for serious injuries to others (e.g., in a car accident or on your property)
• Property damage liability – if you’re responsible for damaging someone else’s property
• Personal liability – such as libel, slander, or defamation claims
• Certain rental property liabilities – if you own rental units

What isn’t covered: Umbrella insurance doesn’t cover your own injuries, damage to your personal property, or business-related claims unless you have a commercial umbrella policy.

In short, Umbrella Insurance acts as a safety net, providing added peace of mind by covering high-cost claims that go beyond the limits of your existing liability policies.

Commercial Auto Insurance

Commercial Auto Insurance is a type of coverage that protects vehicles used for business purposes. It provides financial protection for accidents, damages, or losses involving company-owned or employee-driven vehicles used on the job. This insurance typically includes:

• Liability coverage – for bodily injury or property damage your driver causes to others
• Collision coverage – for damage to your business vehicle after an accident
• Comprehensive coverage – for non-collision incidents like theft, vandalism, or weather damage
• Medical payments – for injuries to the driver or passengers
• Uninsured/underinsured motorist coverage – if another driver causes an accident but doesn’t have adequate insurance

Whether you have a single work truck or an entire fleet, Commercial Auto Insurance is essential to keep your business protected from the high costs of vehicle-related incidents. It’s often required by law if you use vehicles for business tasks such as transporting goods, driving to job sites, or carrying tools and equipment.

Workers’ Compensation Insurance

Workers’ Compensation Insurance provides medical and wage benefits to employees who are injured or become ill as a result of their job. It protects both the employee and the employer by covering:

• Medical expenses related to a work injury or illness
• Lost wages while the employee is unable to work
• Rehabilitation costs to help the employee recover and return to work
• Disability benefits for temporary or permanent impairments
• Death benefits to support the family if a work-related injury results in death

In most states, workers’ comp is legally required for businesses with employees. It helps employers avoid costly lawsuits, as employees typically give up the right to sue in exchange for these guaranteed benefits.

In short, Workers’ Compensation Insurance is essential for protecting your team and your business when workplace injuries or illnesses occur.

Contractor’s Bond Insurance

Contractor’s Bond Insurance, often referred to simply as a contractor bond or surety bond, is a type of financial guarantee that protects clients, project owners, or the public if a contractor fails to meet the terms of a contract, follow regulations, or complete work properly.

It’s not the same as traditional insurance—instead of protecting the contractor, it protects others from the contractor’s actions. If the contractor violates the bond’s terms, the client can file a claim to recover financial losses. The contractor is then responsible for repaying the surety company that covered the claim.

Common types of contractor bonds include:

• Bid Bonds – guarantee that a contractor will honor their bid and sign the contract
• Performance Bonds – ensure the contractor completes the project as agreed
• Payment Bonds – guarantee payment to subcontractors and suppliers
• License/Permit Bonds – required by local governments to ensure legal and ethical business practices

In short, Contractor’s Bond Insurance builds trust by assuring clients and authorities that the contractor will meet their obligations—and provides financial protection if they don’t.

How Insurance Companies Provide Coverage to Small Businesses

Senica Insurance Company covers small business owners by offering a range of policies designed to protect them from financial losses caused by unexpected events. These policies are tailored to the unique risks that small businesses face and can include protection for property, employees, legal liability, and operations.

Here’s how an insurance company typically provides coverage to small business owners:

1. Assessing Risk
   The insurance company evaluates the type of business, size, industry, location, and operations to determine what risks the business faces—such as fire, theft, lawsuits, or employee injuries.
2. Offering Customized Policies
   They offer one or more of the following coverages, either individually or bundled:
   • Business Owner’s Policy (BOP) – Combines general liability and property insurance in one package
   • General Liability Insurance – Covers third-party bodily injury, property damage, and legal defense
   • Commercial Property Insurance – Covers damage to the business’s physical assets
   • Workers’ Compensation Insurance – Covers employee injuries and lost wages
   • Professional Liability (E&O) Insurance – Covers errors, negligence, or service-related claims
   • Commercial Auto Insurance – Covers vehicles used for business purposes
   • Cyber Liability Insurance – Covers data breaches and cyberattacks
   • Umbrella Insurance – Provides extra liability coverage beyond policy limits
3. Managing Claims
   If a covered incident occurs, the business owner can file a claim. The insurance company:
   • Investigates the incident
   • Determines whether it’s covered under the policy
   • Pays for damages, legal fees, repairs, medical expenses, or settlements—up to the policy limits
4. Providing Ongoing Support
   Insurance companies also help business owners manage risk through:
   • Risk assessments and safety programs
   • Loss control services
   • Policy reviews as the business grows or changes