While jobs can be stressful, they offer a great deal of financial security. Knowing that at the end of the month, you will have a guaranteed flow of income. This is not always the case with owning a business. From the day a businessman starts their venture, they are exposed to a whole host of risks. Even before hiring an employee for the first time, there are various risks associated with running a business.
To protect yourself and the business from these risks, it is important to have proper insurance. Without it, the smallest unfortunate event or a simple lawsuit can cause major damage to your business. Fortunately, businesses have access to a wide variety of types of commercial insurance to protect against these risks.
Here are some types of insurance that should have for your business:
Professional liability insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against claims for negligence caused by damages that occur due to performance errors. As every business is unique in its own way, there is no one-size-fits-all policy for professional liability insurance. Each industry has its own concerns that can be addressed in a customized policy written specifically for your business.
Property insurance is mandatory whether the business owns or leases its space. This insurance covers equipment, signs, inventory, and furniture in the event of a fire, storm, or theft. However, major catastrophic events such as floods and earthquakes generally do not fall within the scope of standard
property insurance policies. If your area is prone to these problems, contact your insurance company for
a specific policy offering.
Workers’ compensation insurance
As soon as you hire your first employee, workmen compensation insurance must be added to the business’ insurance coverage. It covers medical treatment, disability, and death benefits in the event of
an employee being injured or killed while working with that business. Even if employees are doing low-
risk jobs, medical conditions such as slip-and-fall injuries, or carpal tunnel syndrome can lead to an expensive lawsuit.
Home-based business insurance
Many professionals start their small businesses in their homes. Unfortunately, homeowners’ policies do
not cover home-based businesses in the same way that commercial property insurance does. If you are
running your business from your home, ask your insurance company for additional insurance to cover
your equipment and inventory in the event of a problem.
Product liability insurance
If your business manufactures products for sale in the general market, product liability insurance is mandatory. A business that takes every possible measure to ensure that its products are safe can also be
named in the lawsuit for damage caused by one of its products. The product liability insurance works to
protect the business if there is specific coverage for a particular type of product.
If your business requires the use of vehicles, those vehicles must be fully insured to protect businesses from liability in the event of an accident. At a minimum, businesses must insure against third-party injury. However, comprehensive insurance also covers that vehicle in the event of an accident. If employees are using the cars for business, their own personal insurance applies to them in the event of an accident.
Standard T&C Apply
There are various other types of insurance that are great for businesses to have like public liability insurance, marine insurance, etc. However, since insurance is an expense, you need to be sure that you only buy coverage that you need. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.