When an entrepreneur starts up his or her own business, there are risks that he or she faces right from the beginning. It can only take one legal problem or accident to put a stop to a brand new business before it even comes into fruition.
However, insurance providers offer a broad range of coverage plans made to protect businesses from these problems in the future. Here are 6 types of insurance that every business should consider.
Errors And Omissions Insurance
Also known as professional liability insurance, this type of insurance protects businesses against claims of negligence. If an employee or customer gets hurt, which is caused by a mistake or an employee’s incompetence, the person in question can file a claim against the business. Errors and omissions insurance has different policies that vary from company to company, and are fully customizable for insurance owners.
Workers’ Compensation Insurance
After staff has been hired, a company’s insurance policy should add workers’ compensation insurance. This insurance provides coverage of medical expenses, disability benefits, and death benefits, if by chance that an employee gets hurt or dies due to working for that business. Even if a company’s working conditions are not as demanding as one might think, injuries from falling can still be covered with this type of insurance.
Product Liability Insurance
If a company produces goods for sale that consumers will buy, product liability insurance is of great importance. Even if a company does all it can to make their products safe and hazard-free, they can still end up being involved in lawsuits if it ends up harming someone or something. Product liability insurance covers such cases. Consult with your insurance provider for insurance quotes commercial businesses can consider to best suit your manufactured products.
Property insurance is an essential for as long as a business has a space of their own. This type of insurance covers assets including equipment, furniture, and inventory in the case of a storm, fire, or robbery. Because hazards like floods and earthquakes can affect multiple companies and homes at once, these are not included in property insurance. Consult with insurance providers for insurance quotes commercial businesses can consider in the event of a flood or earthquake.
If you have a small business from your own home, a company’s property insurance may not cover your assets inside your home. Ask your insurance provider if there are any possible insurance plans that cover assets from businesses that operate from your home.
If a company buys vehicles for business use, such as trucks or vans used to transport goods, they can and should be insured so that businesses will not be liable if anything happens to those vehicles. At the minimum, third party injury should be covered in a company’s insurance plan, but having a full version of coverage should insure vehicle that are involved in accidents as well. If employees are using their own cars for business purposes, they should already have their own auto insurances, so vehicle insurance to cover their vehicles will not be necessary.
Business Interruption Insurance
Retail stores and workplaces that generate goods daily will find this type of insurance to be very helpful. In the case of a natural disaster or an event that causes a great deal of physical or emotional suffering, a business can involuntarily halt their operations. When this happens, the business will lose money due to the lack of productivity in the company, due to no work being done. During such events, business interruption insurance will reimburse companies during this period of time.