What types of business insurance do I need?
From the first moments an entrepreneur thinks about the idea of opening a new business. He/she should also consider some measures to protect that investment too. For instance, buying a business insurance is one of the must-haves. Otherwise! The business faces the risks of getting shut down before actually starting to produce revenues. How? Just think about what could happen in case of a sudden accident or a lawsuit.
So, let’s analyze some of the most important issues that every entrepreneur should consider when starting any type of business. Including small or medium-sized companies. They all face the same risks!
Depending on the business you have, the insurance type you want to purchase or the broker you choose to assist you. The costs can vary. However, just put things into balance. How much can you lose if you are obliged to close your business right now? All the investments you’ve made so far, the time and the efforts will be in vain. So, the best way to shelter your investment is to think about a business insurance from the early beginnings.
Something you should know from the start. there is an insurance policy out there for no matter what needs or requirements you might have. Without a doubt, every business must have an insurance policy.
What is a business insurance?
But, let’s start with the beginning and analyze, some details that can take some of you by surprise. There are all forms and types of business insurance policies out there, each and one covering the business against losses/damages that can be caused by a variety of reasons. Thus, if unsure of how to assess the business risk or the coverage, contact a local insurance broker and discuss your needs.
To continue.. The topic of the business insurance types is fairly broad, so to make things less complicated for you. Let’s have a brief overview of the main categories you might be interested in.
Top Business Insurance types every business needs!
This is one of the most important types of business insurance policies every entrepreneur should get for his/her business. This policy can turn out to be useful when damages to a third party have been made. Here we’re talking about property damage, injuries, accidents caused by your business, products, services, negligence or false advertisement. Depending on the sector of your business, this policy can be personalized.
As the name says it. This type of insurance protects you against unpredictable events such as theft, fire, storm, vandalism and so many others. This policy has to do with the building where the business takes place and covers the equipment, the furniture, the inventory, lost income, documents and others.
This type of insurance is a must for the companies that possess autos. The Vehicle Insurance covers for the damages done to your cars, to another vehicle, and even for the death of the driver.
Worker’s Compensation Insurance
If you have employees! Then you should focus on this insurance too. As it can protect you from legal complications that might get your business shut down. If the employee gets injured while at work. Then he/she will receive the benefits from this insurance, with the condition they will not sue you or your company. The finances can cover the employees’ wage, medical treatment or even death benefits. Even though, their work presents no immediate risks, accidents can always happen. So it’s better to stay prudent and get a Worker’s Compensation Insurance.
Product Liability Insurance
The products that your business produces can cause injury or harm. Therefore, any business should take cover with this insurance policy. You might say that you take all precautionary measures for your products to stay safe, however, you never know what might happen until the product gets to your customer. Please note that this policy can be personalized for your business/industry. So have no worries.
Professional Liability Insurance
Each and one of us can make mistakes, so what better way to protect your business against this danger. If not with an Errors and Omissions Insurance? The Professional Liability Insurance protects your business against negligence claims that have been caused by mistakes or failures to perform. Otherwise said, it protects the owner against malpractice or errors that might harm the customers.
Business Interruption Insurance
If a catastrophic event happens, your business can become unable to produce for a certain period of time. So, what then? A Business Interruption Insurance might be your way out of this stressful situation. In short, it benefits a company for its lost income during this time frame. Study the policy attentively and discuss the possibility of purchasing one as soon as possible. It might just save your business from bankruptcy.
Home-Based Business Insurance
If you’re running a business from your own home, then you should consider this insurance as a top priority. Take no risks when it comes to the investment you made in the equipment or inventory you have. This policy can cover you in case unfortunate events happen.
If you have already purchased an insurance policy… But you simply want more certainty that everything is going to be covered in case something happens. Then an Umbrella Policy might be exactly what you’re looking for. This insurance covers whatever was left out of an already existing insurance. Otherwise said, it exceeds the limits of an existing policy. Great, right?
All in all! No matter what type of policy you choose to purchase. We can all agree that every company must be insured. Discuss these opportunities with an insurance company or broker and get all the details you need to make the right choice. Don’t risk the investments you made and maximize your business success!