Once you venture into a business, you expose yourself to multiple risks. If you plan to go full-time in entrepreneurship, you need the appropriate insurance coverage. Remember you are investing massively in this business and you need to ensure your investment is safe. If you are thinking about taking insurance policy, ask yourself what you would do if you or an employee gets injured or when your property is damaged? To ensure you are covered against these uncertainties get the following insurance coverage for your business.
Professional Liability Insurance
Professional liability insurance, commonly referred to as errors and omissions insurance, covers your business against negligence claims as a result of mistakes or poor performance. It also includes damages incurred within your property. No one wants to be sued, but unfortunately, as a businessman, you might have this experience. With this insurance, the insurer will handle lawsuits. Each sector has its unique policies to address the professional liability claims.
Business Interruption Insurance
Floods, earthquakes, and hail storms interrupt regular business operations when they occur. During this time, your organization could suffer lost income as your staff won’t be able to work in the office, make business calls, or manufacture products. At the same time, your suppliers might be unable to access your business location especially in times of civil wars or floods. With this type of insurance, the insurer will compensate you for the lost income during catastrophic events. This insurance is available to enterprises that require a physical address to do business, such as warehouses.
Workers’ Compensation Insurance
The moment you employ your first employee, workers’ compensation insurance should be added to your insurance policy. Employees are exposed to many dangers while in their daily activities. With this cover, your employees ‘medical treatment, death benefits, and disability in case the worker is injured or dies as a result of their work at your business. It is essential to understand that an employee can sue your organization for medical compensation long after they ceased working for you. This happens especially for workers with carpal tunnel syndrome, which could end up being a costly claim. Even if your company handles low-risk work, medical conditions and slip and fall injuries can occur anywhere.
Whether you lease or own the space, property insurance is essential. This insurance covers inventory, furniture, signage, and equipment in case of fire, theft, or storms. Natural catastrophes such as floods and earthquakes are not covered under general property insurance policy. If your business operates in an area prone to these calamities, contact your insurer to get a specific property insurance coverage.
Product Liability Insurance
Product liability is essential for businesses that manufacture products for sale in general markets. Although many entrepreneurs in this sector think that this policy is negligible, they end up getting lawsuits for damages caused by one of their products. The product liability insurance available covers a particular product.
If your company has vehicles, ensure they are fully insured to protect the business against liability in case of an accident. Comprehensive insurance covers are advisable as they include both the vehicle and third parties. Company driver policy is essential as it instills discipline and responsibility in your drivers reducing destruction and substance consumption related accidents. Do not let employees use their vehicles for business purposes such as goods delivery as your firm will be liable in case an accident occurs.
With the right insurance in place, a business can avoid significant financial losses especially due to lawsuits and disasters. Check with your insurer to see the available coverages to protect your assets and ensure the long-term success of your firm. Having an online business degree is advisable as it will help you gain more knowledge concerning insurance coverage and how modern companies need to be protected.