Your business results from years of hard work, not just yours but your entire team as well. You have put your heart and soul into creating an entity that helps the community while giving you your means of living. Like everything important to you, you need to ensure that your business has sufficient protection.
Business insurance helps businesses cover unforeseen expenses that can severely cripple a company. Depending on the incident’s gravity, personal injury claims can have you pay for costly and expensive damages.
Businesses, both big and small, need to have protection to last and survive. Some big enterprises set up a subsidiary called a captive insurance company. Captive insurance companies can be complicated because an experienced captive insurance attorney must ensure compliance with tax laws.
One type of insurance is not enough to provide your business with sufficient coverage. Each type of insurance gives your business protection against specific circumstances.
Here are some basic insurance plans that your business should have for your peace of mind.
Professional Liability Insurance
All businesses, especially those that engage in high-risk activities such as construction and transport, need to have liability insurance. Liability insurance reduces your risk of exposure against negligence claims that can put everything you’ve worked hard for at risk. You or your people can make mistakes along the way, so you want to be ready for those unwanted incidents.
Product Liability Insurance
If your business involves manufacturing, distributing, and selling a product, then this is a must for you. Defective products are a reality for businesses. They can get their defects during manufacturing or during transport. Any mishandling of the product along the retail chain can also damage the product.
If not taken out of shelves, damaged goods can cause inconvenience, injuries, or illness to the consumer. It can result in a costly lawsuit that can be damaging not just to your brand and reputation but to your finances as well. Getting a product liability insurance designed especially for the type of products you offer can protect you against this kind of lawsuits.
Commercial Property Insurance
Like the way you are keeping your home secured and protected, you should also ensure the protection of the structure that houses your business. Property insurance protects your business property, along with your equipment and inventory, in the events of theft, fire, or a storm. If your business stands in a flood-prone or earthquake-prone area, you might need to check with your insurance company if such disasters are covered. Commercial property insurance will also protect your property from any form of vandalism.
Vehicle insurance is essential if you are using company-owned vehicles. It will protect you from liabilities and claims should a vehicle registered under your company gets involved in a road accident. Ensure that you have the state-required minimum requirements on vehicular insurance to ensure that your liabilities are covered.
Home-based Business Insurance
Many businesses start from home. However, your home insurance policy does not cover your home-based business. You can ask your insurance agent if you can get riders that will cover your business equipment, supplies, and inventory in the event of disasters.
Workers’ Compensation Insurance
Most states require employers to have insurance to cover for their employees who will be injured or sick due to work. This policy will ensure that your workers will receive the needed medical treatment for their injury. It will also provide for financial compensation to the injured or ill employees. Most employee benefits covered by a workers’ compensation insurance include death benefits, medical expenses, therapy and rehabilitation, and lost wages. You can get an insurance policy from a private insurance company or state-operated funds. This will depend on the requirement in the state where you are running your business.
Business Interruption Insurance
Unforeseen events can lead to business interruption, which can lead to lost income and opportunities. This can happen because of a natural calamity or any disaster that can cripple your business operation. A business interruption insurance can cover the following:
- Profits based on past performance
- Fixed costs
- Temporary location needed to continue your operation
- Replacement of damaged equipment
Things To Consider When Choosing Business Insurance
There is no one-size-fits-all solution when it comes to any insurance. Your protection needs might differ from the needs and requirements of other businesses. As your business evolves and grows over time, your insurance needs will also change.
Here are the factors that can affect your operation risks that will need protection.
- The type of your business
- Your locationogs
- The equipment that you use
- The processes involved in your operation
- Any intellectual properties that you have
Get the right insurance products to cover your needs and risks. Do not try to cut back on your insurance because you are trying to save. You can end up spending more than years worth of premiums if you don’t have enough coverage. It can even put your business at risk of bankruptcy or closure.