INSURANCE YOUR BUSINESS NEEDS TO BE PROTECTED
As a businessman, you have exposed yourself to some risks the day you start your own business. A business is normally at risk, even before you hire your first employee, thus having the right insurance is very important. There are wide selection of insurance types for businesses to access in order to protect them from dangers like a lawsuit or a catastrophic event. Here are some types of insurances that an entrepreneur should consider for his business.
Whether you own or lease your space, it is a must to take a proper business insurance. This type of insurance will cover your signage, equipment, furniture and inventory in case of a theft, storm or fire. But there are things that are generally not covered like flood, earthquakes or any kind of mass destruction under the standard property insurance policies. Make sure to check with your provider if your location is prone to these kinds of situations to price a separate policy.
Professional Liability Insurance
A professional liability insurance is also known as an E&O or errors and omissions insurance. It will cover your business against any negligence claims due to harm that may result from a failure to perform or a mistake. There is no one-size-fits-all policy for professional liability insurance. Every industry has its own set of concerns that will be addressed in a customized policy written for a business.
Product Liability Insurance
If you have a business that manufactures products for sale on the general market, it is a must for you to get a product liability insurance. You can take all the necessary precautions in making sure your products are safe but there are times when you can find yourself in a lawsuit due to damages or harm caused by one of your products. This type of insurance will work to protect your business in such case, with coverage available to specifically suit a specific type of product.
If there is a company vehicle being used, it needs to be fully insure as well to protect your business against any liability if an accident is to happen. You can at least get a third-party liability insurance, however, a comprehensive insurance will cover a vehicle in case of an accident as well. If your employees are using their own vehicles for business, then their own personal insurance will cover them in case of an accident. There is a major exception for this though and that is if they are delivering services or goods for free. This will also include delivery personnel.
Workers’ Compensation Insurance
A workers’ compensation should be added to your business’ insurance policy once you have hired your first employee. This will cover disability, medical and death benefits if in case your employee is injured or dies as a result of his work with your business. Even if your employees are performing a seemingly low-risk job, medical conditions like carpal tunnel syndrome of slip and fall can result in a very costly claim.