Everyone knows that they should insure themselves against damages and theft or accidents, but insuring a business is much more complicated than that. There are situations that you need to take into consideration such as your client possibly suffering damages due to your product or services, or employees injured on the job, etc. Depending on the kind of business you have, here are the top five insurance plans that you should look into.
As mentioned, if your employee is injured while on the job - she could have tripped down the stairs or gotten into an auto accident - as long as it’s on office duty and during office hours, you will be liable to pay for any medical, therapy and wages. Without these compensations, the worker could bring you to court. According to state laws, worker’s compensation provides your company with legal protection and your worker with the necessary reparations. You don’t have to worry about the costs as everything will be covered. Also, you wouldn’t need to bother yourself with the legal complications which could follow.
All businesses from vape shops to multinationals, whether operating from home or an office, whether selling products or rendering professional services, should have general liability insurance. This protects your company from claims that your product or service has caused any injuries or damage to a third party’s property, which could also include the client’s own property.
For instance, general liability insurance can protect the company from receiving any lawsuits pertaining to damages caused by their products. A customer might have gotten a hardhat from their warehouse and safety department and developed an allergic reaction; the hardhat could have been defective and when falling debris hit it, it immediately split open and resulted in an injury. The company will not be responsible in any way for that customer’s treatment, regardless of whether the customer had used it according to the manufacturer’s instructions or not.
Another important insurance to purchase for your small business. This policy insures against theft, damages, natural disasters, fire, water damage, and more. You can also add on business interruption or loss of earning insurance to prevent excessive financial losses in the event your business is unable to continue operation for a period of time.
It is possible to get a bundle insurance from your insurance provider and they will include general liability, property insurance, vehicle coverage, liability insurance, and crime insurance. However, if your business does not require a vehicle or if the crime rate is extremely low to the point where you’re willing to take a chance of not being covered in an event of a break in, you can have your insurance agent tailor your Business Owner’s Policy (BOP) for you. Otherwise, it’s best to get a preset bundle because it’s often cheaper and it’s better to be insured against more than to realize too late that you should have gotten better coverage.