Running a business is a big job, and there are many variables involved in reaching success. Insurance is one of the most powerful tools for effectively wrangling the many variables of business. If you still don’t have business insurance for your company, perhaps it’s high time for you to get one now.
What Is Business Insurance?
Like life insurance, auto insurance, and home insurance, business insurance is a form of legal protection against financial damage, loss, and liability for your business. Contrary to a personal insurance policy, business insurance offers protection for your entire business.
Choosing business insurance coverage varies from one company to another. The tested and proven way to choose the right coverage for your insurance policy is to assess the potential risks in your business. If you’re unfamiliar with this undertaking, you can hire a licensed insurance broker to help you identify the types of coverage you should purchase.
There are a thousand and one different legal angles that could end up costing your business more than is affordable if you don’t have the proper insurance coverage. Here is a brief overview of some of the most vital insurance coverage options for business owners in every industry.
Professional Liability
Professional liability insurance is also regularly referred to as Errors and Omissions insurance coverage. If one of your professionals fails to properly inform a client or simply does a terrible job, your business could be liable for financial damages.
The industry with which you operate will require specific coverage, so there’s no one-size-fits-all policy to purchase. Work with your insurance agent to get the best coverage for your particular business.
General Liability Insurance
General liability coverage is meant to protect your business from the financial and legal penalties you could face if someone gets hurt on your property. If an elderly woman slips and falls on your wet floor, you could face severe legal repercussions for personal injury.
There’s no foretelling the instances that could occur when you are running a brick and mortar organization, and you’ll need insurance coverage for safety from legal backlash.
Property Insurance
Property Insurance is another type of insurance that is more beneficial to those who run a brick and mortar location, but there are benefits of property insurance for home office owners as well. You don’t necessarily have to have a business that is opened to the public to benefit from the coverage of property insurance.
Workers’ Compensation Insurance
Workers’ compensation insurance is not only a legal requirement for business owners in most places, it’s an ethical element. You should feel responsible for the safety and longevity of your employees in business and in life.
Your workers’ compensation policy will make certain that your employees are protected financially should they be terribly injured on the job. Don’t leave your workers out in the cold, and invest in workers’ compensation.
Product Liability Insurance
If you’re running a business that makes a product for sale to customers, then you need the protection provided by a product liability insurance plan. A product liability insurance policy is meant to take over should your product fail or harm someone.
For instance, if you make shoes, customers expect certain things from those shoes. If your shoes have a defect that constantly causes people to trip and fall, then your business could be in some tricky trouble without product liability insurance.
Business Interruption Insurance
You’ll never know when accidents and natural disasters may happen. These types of events are unavoidable and can undoubtedly cause interruption and potential harm to your business.
Basic interruption insurance covers your company’s lost income in the event that you’re unable to manufacture products, employ staff in your physical stores, and generate sales calls. For businesses, business interruption coverage is especially useful today in the COVID-19 era.
Bottom Line
Business insurance serves as your shield against many financial hits that may occur in the course of your business. Although increasing your policy’s coverage relatively increases the premiums you’ll have to pay to keep the policy in effect, you’ll eventually thank yourself when these legal responsibilities appear out of nowhere, putting your business at risk.
