Businesses need to be insured to have ample protection, especially in unforeseen circumstances that may heavily impact the company’s finances and operations. Insurances are meant to offer a certain protection that will cover financial losses due to these unfortunate events.
If you’re a small business owner, then you need to protect your business. Whatever reason you may have, there’s no reason for you ever not to have any form of insurance, particularly business insurance, even as a small business. The downside is you may suffer financially, when problems arise and you haven’t done anything to protect your business.
Thus, here are some types of insurance you need to protect your business.
Professional Liability Insurance
Another one of the best types of insurance to consider is professional liability insurance. This is important if you provide professional services for people. If you don’t have this coverage, then you could find yourself in trouble with your business.
Professional liability insurance is also known as errors and omission insurance. Among the examples of business insurance coverages, professional liability insurance is one that needs to be customized according to the industry where your business belongs. This is because a professional liability insurance covers a business against claims that stems from operational mistakes, wherein every industry has a different set of standards.
If a customer or client suffers an injury or damage as a result of using or being employed by your business, it’s important for you to be covered by professional liability insurance. This is especially important for businesses that are in the service industry. You may not know it, but you could be liable for injuries or property damages incurred while providing services for someone else.
Especially because you’re operating a small business, you will find that having professional liability insurance is a wise decision. When a person sues your business for injuries or damages, it will cost you money. In order to keep from having to fork out money in excessive litigation, you may want to consider purchasing this policy.
Property insurance is imperative for brick and mortar businesses because this cover equipment damage, signage, inventory and even furniture in the event of fire, storm, or even burglary and theft. However, property insurance rarely covers these if the cause is due to floods or earthquakes, which are deemed as major destruction. There is usually a different insurance policy for these scenarios such as a business interruption insurance, which is intended to protect a business from a disaster or a catastrophic event wherein business operation may come to a halt.
Another benefit of property insurance is that it provides coverage for liability. If someone is injured while on your property, this type of policy can help you shoulder the cost of medical expenses and repair costs.
Workers’ Compensation Insurance
Your workers’ compensation insurance needs to be added to your overall business insurance policy as soon as your employees are hired. This insurance policy covers medical treatments, disability and death benefits in case your employee is injured, or worse passes on, as a result of his work on your business. In these scenarios, you are ensured that your business has an ample coverage in terms of supporting your employees.
Product Liability Insurance
Your business needs a product liability insurance if you manufacture goods for the consumption of the general public. While it is true that reputable businesses ensure that their products are of high quality, there are unfortunate scenarios wherein products that fail the quality standards reach the end users. In this case, the products from a business may cause unnecessary hazards to the customers and as a result, they may file a claim against the business. A product liability insurance ensures that a business is protected from these unfortunate instances.
Another type of insurance for your business is commercial auto insurance, also known as vehicle insurance. This insurance type can offer you protection if you have an investment, particularly an auto vehicle, that’s at stake.
This type of insurance is mandatory for businesses with company vehicles utilized for business transactions such as logistics, transport, and delivery. Company vehicles should have the proper coverage to protect the business in case of vehicular accidents or road mishaps involving these vehicles. Nevertheless, a comprehensive business insurance typically covers even the company vehicles.
Indeed, insurances are necessary to have substantial protection and coverage in scenarios such as equipment damage and at times, even burglary and fire. Thus, it can be deemed that a comprehensive insurance does protect a business by covering for the financial losses in cases wherein there are interruptions in the operations. Research more about the insurances discussed above to ensure that your business has the proper protection it needs.