If you’re an established business owner or an aspiring entrepreneur, you’re probably aware of how important insurance can be to your business.
Whether you own a successful business or are starting a new one, insurance is essential because it simply protects you against all kinds of risks that you could face.
When starting a new business, you probably want to save yourself from the extra expenses of paying for insurance.
However, going on without insurance could really hurt your business in case any setbacks or accidents take place and you aren’t prepared for it.
In fact, having the right business coverage will help you minimize your financial losses if you are exposed to any type of accident.
Although every business is unique in its own needs, there are some general insurance types that any business needs to have.
General liability insurance
This type of insurance is usually referred to as business insurance. This coverage is needed by most small businesses as it protects them against general incidents, such as bodily injuries or property damage.
For example, if a client is injured on your business property, he/she can sue you for that. A simple, small accident can result in lawsuits that you wouldn’t be able to handle, so make sure you are protected by having general liability insurance.
Commercial property insurance
This covers the property owned or leased by your business as well as your commercial personal property, including your tools and equipment such as your computers, inventory, furniture, and even documents.
In case a fire happens, or you are subjected to theft or vandalism, this coverage will cover the costs and expenses associated.
However, a business can tailor its needs when it comes to commercial property insurance. For example, you can include your business valuable records and papers.
Workers’ compensation insurance
If you’re a small business with employees working for you, then you should include workers’ compensation insurance.
Even if you have a small number of employees, the insurance specialists from AmerusFinancial.com advises that this insurance type is necessary, as it offers several benefits to your business.
It will cover the financial expenses needed to support employees who are unable to work because of a job-related injury or illness and replace their lost wages if they are to take time to recover.
For example, if your employee injures themselves while carrying out work-related duties, this type of insurance will help cover their medical care, and even pay them off for most of their lost wages.
Commercial auto insurance
If you own any vehicles, commercial auto insurance protects your business from any liability and physical damage arising from your commercial vehicles.
Those vehicles can include any types used for your business, such as cars, trucks, vans, and trailers.
So, you don’t have to own an industrial truck to be eligible for this type, as it doesn’t only include industrial vehicles such as trucks.
For example, if you own a business car that you use it to run errands, transport employees or clients, or for any other business purpose, then this car is eligible for insurance coverage.
Professional liability insurance
If you are about to launch a small business that provides professional services to clients, then you probably need this coverage.
If you are a lawyer, consultant, attorney, engineer, architect, or a real estate agent, or any professional who offers advice to clients, then you should consider purchasing professional liability insurance.
This insurance type will protect you from claims that could arise from clients in case you commit any mistakes or failures within your services.
For example, a client can sue you for negligence or for making errors within a service your business provides. Moreover, this insurance covers the clerical errors made by your employees as well.
Product liability insurance
Product liability insurance protects a business from damage claims that arise from the use of its products.
This is very essential if you sell a certain product to the general market. Even if your business is still small and you are ensuring the application of every safety measure possible, you can find your business getting sued for damage claims.
This type of coverage can be tailored to the specific type of product that you are selling.
Business insurance is extremely essential for any business as a single lawsuit or a natural disaster can be enough to wipe out your work if left unprotected.
Although you might want to cut down on your expenses, this insurance will protect you, should unforeseen events happen.
The trick is to ensure that you understand your business needs well, and to always have yourself protected with the right coverage and insurance needs.