Insurance is very important for protecting your business, from the property you own to the products you sell and the services you provide. However with such a lot of types of small business insurance available, how do you know what sort you need? We have listed here some important small business insurance types and what they cover to help you understand which type is best for your business.
What Type Of Business Do I Have?
While you are thinking about small business insurance, it is good to first consider about what type of business you have. It is good to ask yourself questions like:
- Am I public dealing business?
- Do I sell products to customers?
- Do I offer advice or professional service?
- Do I depend on the equipment and property I use to run my business?
When answering these types of questions, you need to keep in mind that the major types of business insurance available. These are:
Professional Liability Insurance
Professional liability insurance is a program that covers a business against negligence claims due to the impairment that results from the errors or failure to carry out. There is no one-size-fits-all policy for professional liability insurance. Every industry has its own set of worries that will be managed in a personalized policy written for a business.
Workers’ Compensation Insurance
Once the first worker has been employed, the workers’ compensation insurance should be added to a business’ insurance policy. This insurance program will cover the medical treatment, disability and death benefits if the worker is injured or dies on duty. Despite the fact that the workers are performing apparently low-risk work, injuries or medical situations could bring about an expensive claim.
Product Liability Insurance
In case your business manufactures some sort of products for sale in the market, the product liability insurance is essential. Even a business that takes every possible step to ensure its products are safe can locate itself named in a lawsuit just because of the damages caused by their product. This insurance program works to shelter a business from such type of cases.
Whether a business possesses or leases its premises, property insurance is very important. This insurance program covers business equipment’s, inventory and furniture in the event of a hearth, storm or robbery. However, the mass destruction events, for example, earthquakes and floods are commonly not blanketed under standard property insurance policies. In case your vicinity is prone to these types of problems, confirm with your insurer to price a different policy.
In case a business vehicle will be used, those vehicles should be insured to protect businesses against liability if an accident should happen. For minimum, businesses need to insure against third-party injury, however comprehensive insurance will cover that vehicle in an accident. In case the workers are using their personal vehicles for business, their personal insurance will cover them within the event of an accident. One important exception to that is if they’re delivering products or services for a fee. This comprises delivery workers.
Business Interruption Insurance
In case a disaster or shattering event does occur, business’ operations will definitely be bothered. At the same time, your business will experience lost income due to your workforce’s inability to work in the office, manufacture products or make sales calls. This type of insurance is mainly pertinent to businesses that require a physical location to do business, such as retail businesses. This type of insurance compensates a business for its lost income at some point in these events.
By having the right type of insurance in place, a business can avoid major financial loss due to a lawsuit or catastrophic event. Check with your insurance company to find out what types of insurance are available for your type of business.