Owning a business can be full of risk and the potential for a big loss.
That’s why you need to protect yourself. Getting to know the different types of business insurance is an integral part of running a small company. If you understand where you’re vulnerable, then you can take measures to protect yourself and your interests.
Today, we’re going to look at 4 important types of business insurance that every company can benefit from. Each individual company will have specific needs to be taken care of but often you’ll be able to customize your policy to fit those specific needs.
Don’t let negligence be the reason for big-time loss for your business; get insurance.
1. Property Insurance
You’ve got to protect your space and your property against damage and theft. This type of insurance will cover equipment, signage, inventory, and furniture in the event of theft, fire, or storms.
If you live/work in an area that is susceptible to natural disasters, however, you’re not likely to be covered with a basic property insurance plan. You’ll either have to tailor your plan to include flood or earthquake insurance or deal with it in a natural disaster-specific plan.
2. Workers Compensation Insurance
When you start hiring employees, you need to have workers’ compensation insurance in place. This covers medical treatment and disability benefits in the event that one of your workers has an injury on the job.
Many plans will also cover death benefits. Workers’ comp is tricky because even the lightest, most non-consequential-seeming injury can result in a pricey claim. The insurance will help you deal with it, but if you don’t have it, you’ll be in real trouble when the employee makes a claim.
3. Loss of Business Income Insurance
This kind of insurance policy is meant to cover you in the event that your business cannot perform its normal duties over a period of time. Most commonly, you’ll see this enacted when a natural disaster occurs, causing property damage that prevents you from working.
Loss of business income insurance will cover the profits that you would’ve made had the business been operating normally. It basically allows you to remain on your feet when something bad happens.
4. General Liability Insurance
General business insurance covers you in the event that one of your products, services, or employees is “negligent”, causing bodily harm or damage to property. It’s incredibly important if your business sells products that are distributed to the masses because you’re not in control of what happens outside of your facility.
Similarly, if you provide a service, like a restaurant, then you’ll want liability insurance to protect you against a customer getting food poisoning or tripping over a chair and filing a claim against you.
Different Types of Business Insurance for Different Folks
These are a few examples of the different types of business insurance that you can protect yourself with, but there are many more. Things like cyber liability insurance are more important today than ever for internet-based companies. Whatever your needs are, you can find an insurance plan to help you feel covered.
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