If you are running a business, then it is your job to secure it in the best way possible. The best way is to get business insurance. One catastrophic event or lawsuit is more than enough to wipe your business from existence. Seven types of business insurances are described below.
If you are running a business, then it is your job to secure it in the best way possible. The best way is to get business insurance. One catastrophic event or lawsuit is more than enough to wipe your business from existence. This is why insurance has so much importance and significance in your business. Go for general insurance and avail yourself of its benefits. Once you find the right commercial insurance broker, you can have them review which of the seven types of insurance are described below best suit your needs.
Professional liability insurance
Professional liability insurance is basically used to cover your business against negligence claims due to the harm which results from the mistakes or failure. There is no specific professional liability insurance that is fit for all industries. Every industry has its own concerns that are likely to be addressed in a customized policy written for the business.
Property insurance is needed for those businesses that own or lease its space. Commercial property insurance is there to cover signage, equipment, furniture and inventory in event of theft, storm or fire. But various mass destruction events such as earthquakes and floods are not covered under this insurance policy. In case your area is prone to such events, then you are required to check with your insurance provider for the obvious reasons.
Workers’ compensation insurance
When your business hires its first employee, you need to go for workers’ compensation insurance. This insurance covers disability, and medical treatment, as well as death benefit if an employee gets injured or even dies while working in the business. On the other hand, in case the employees perform comparatively low-risk work, then the normal slip and fall injuries or various medical conditions like carpel tunnel syndrome could result in a very pricey claim.
There are many people who start small businesses in their homes. The homeowner’s policies basically don’t cover the home-based business in the same way commercial property insurances do. In case you are running your business from home, you are required to have a talk with the insurer for additional insurance for covering the equipment as well as inventory, if problems arise.
Product liability insurance
In case your business manufactures various products for the sale on general market, then you need to go for product liability insurance. Even if you take all the possible measures to secure your products, still a lawsuit can cause damage to your business. This is why you have every reason to go for this insurance for your own convenience. This policy is there to provide you coverage that is specifically tailored to the needs of your business.
If you run a business, then you may have various vehicles that are used for business purposes. These vehicles are always required to be properly insured in order to protect your business in the best way possible. In case an accident occurs, then this insurance will be of best use.
You are at least supposed to go for the third-party injury, and the comprehensive insurance is there to cover the vehicle involved in accident. Moreover, it will be beneficial for your business if your employees have insurance on their vehicles. But when these cars are used for delivering the products of your business or for other business then your business’s vehicle insurance should be used. Note: vehicle insurance requirements vary by state.
Business interruption insurance
If some kind of catastrophic event or disaster occurs, then the operations of your business could be interrupted. During this phase, the business will suffer from lost income since the employees won’t be able to work, manufacture products or make sales. This is when business interruption insurance is needed to save a business from running on a loss. These policies are applicable to companies that have a physical location for doing business like retail stores. Go for this insurance and avail yourself of its benefits.