Here are 7 types of insurance for your business that can protect your business and its affairs. As an entrepreneur, your business can’t operate in the absence of threats or risks on daily basis. When your business is protected, it will draw more lines for motivation. At every stage, your business is at the moment, it prunes to risk, and even before the first employee is hired, a business is at risk. To be sure your business is operating with low risk, you need the right insurance in place.
It is important that your opponent can target your business’ witnesses and shoot it down with just one lawsuit. Far from that, one catastrophic event could be enough to wipe out your business, if no right insurance package is in place.
Luckily, there is a wide range of access to insurance packages for businesses across the globe, and we are here to tell you a few of them. Insurance protects your business against dangers and unexpected events that are capable of rendering any business useless.
Here are the 7 types of insurance for your business you must have put in place as soon as possible:
1. Property Insurance
Whether a business owns or leases its space, property insurance is a must. This insurance covers equipment, signage, inventory, and furniture in the event of a fire, storm, or theft. However, mass-destruction events like floods and earthquakes are generally not covered under standard property insurance policies. If your area is prone to these issues, check with your insurer to price a separate policy. You need insurance for your business.
2. Professional Liability Insurance
Professional liability insurance also referred to as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform. There is no one-size-fits-all policy for professional liability insurance. Each organization has its own set of concerns that will be addressed in a customized policy written for a business. You need insurance for your business.
3. Workers Compensation Insurance
Once the first employee has been hired, workers’ compensation insurance should be added to a business’s insurance policy. This will cover medical treatment, disability, and death benefits in the event an employee is injured or dies as a result of his work with that business. Even if employees are performing seemingly low-risk work, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome could result in a pricey claim.
4. Product Liability Insurance
If your business manufactures products for sale on the general market, product liability insurance is a must. Even a business that takes every measure possible to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products. Product liability insurance works to protect a business in such a case, with coverage available to be tailored specifically to a specific type of product. You need insurance for your business.
5. Home-based Businesses
Many professionals begin their small businesses in their own homes. Unfortunately, homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. If you’re operating your business out of your home, ask your insurer for additional insurance to cover your equipment and inventory in the event of a problem. You need insurance for your business.
6. Vehicle Insurance
If company vehicles will be used, those vehicles should be fully insured to protect businesses against liability if an accident should occur. At the very least, businesses should insure against third-party injury, but comprehensive insurance will cover that vehicle in an accident, as well. If employees are using their own cars for business, their own personal insurance will cover them in the event of an accident. One major exception to this is if they are delivering goods or services for a fee. This includes delivery personnel.
7. Business Interruption Insurance
If a disaster or catastrophic event does occur, a business’s operations will likely be interrupted. During this time, your business will suffer from lost income due to your staff’s inability to work in the office, manufacture products, or make sales calls. This type of insurance is especially applicable to companies that require a physical location to do business, such as retail stores. Business interruption insurance compensates a business for its lost income during these events. You need insurance for your business.