Whether you are a budding or experienced business person, your success requires taking risks in certain aspects and minimizing other risks in some areas. You cannot get rid of all the risks, but with an insurance cover, you can be protected if the sky comes falling.
Even so, many business owners tend to avoid the topic of insurance, with many owners not knowing the best type of insurance for their business, and in the end, their businesses end up hurting.
But how do you make sure you have the right insurance for your business to survive mishaps such as product failure, customer or employee injury, or natural disaster? To always stay on the safe side, it is wise to have a mix of various essential business insurance types.
This article discusses the seven most vital types of business insurance you should get for your business.
Business Property Insurance
Business property insurance covers handle damages for covered properties. The policy protects your business premises and everything that is inside including computers, machinery, furniture, and business inventory- items that are crucial for your business operations.
Some business property insurance also caters for expenses such as money required to keep the business in operation until the damage is fully repaired.
General Liability Insurance
Even though it does not require a business to have general public insurance, it is still a critical insurance policy that can protect your business in case an accident or lawsuit occurs.
A business can face claims against personal injury, property damage or bodily injury, or even fake advertisement. This type of insurance protects you against financial ruin if an employee destroys a client’s home or a client falls on a wet floor in your office. The cover also assures clients that they are not ignored if an accident happens.
Professional Liability Insurance
This type of business insurance is also known as errors and omissions insurance (E&O insurance). It is paramount if you work direct services to customers. The policy protects you against claims of improperly done service, poor performance, or claims of negligence. Precisely, this policy pays for the damages linked to a claim of losses as a result of your errors or negligence.
Business Interruption Insurance
This insurance type handles lost income your business experiences due to disaster, which could be closely associated with the closure of your business, such as a street closure or a fire in your business premises.
Most businesses do not buy this policy because it is costly, but given the rise in natural disasters, companies may want to reconsider.
Product Liability Insurance
If your business sells products to the general public, consider purchasing the product liability insurance. Even though you might do all you can to ensure your products are safe and customer-friendly, claims against your products are not uncommon, and so, you want to make sure you are protected.
This insurance policy ensures you are protected if you face a lawsuit. Another notable thing about this insurance type is that you can customize the amount of money you are protecting if you face a trial.
Vehicle Insurance
If your company uses vehicles all the time, you should get the vehicle insurance as it will protect your business against losses or damages in case of an accident and your company is found to be at fault.
Even though a basic cover may only protect you and your employees, you can opt for a more advanced plan that covers liability and injury for damages.
Disability Insurance
Disability insurance policy makes sure that your employees are paid a portion of their income if they are not in a position to work because of injury or illness.
The difference between this policy and worker’s compensation is that for the former, injury or illness doesn’t have to be related to work. For example, a pregnant employee may request for disability benefits after delivery.
Certain states in the US require employers to provide disability insurance, which is known as Short-term Disability Insurance. This cover is valid between three and six months after an employee has fallen ill or injured.
Even if you do not come from these states, it is still essential to have a short-disability policy to give your employees some peace of mind. This will also make you a caring employer.
However, long-term disability policy is not common, but it is only active until the employee has returned to work or until the date of expiry reaches. Usually, the cost of disability insurance is between 0.25 and 0.50 per cent of your salary.
As a business person who wants your business to succeed, you should always look to protect your business at all costs. Having a mix of insurance policies such as the ones discussed above will ensure continuity of your business, even if disaster or losses occur.
You May Also Like : Understanding Cyber Insurance & Its Perks For Business
