From the day you launch a business, you expose yourself to several risks. Unexpected events might arise at any given moment. Therefore, it is imperative to acquire insurance policies for your business to protect yourself from liability. A catastrophic event or a lawsuit can wipe a small business even before it gets off the ground.
Luckily, businesses have access to multiple insurance policies to protect them from unforeseen events. Here are the types of business insurance every entrepreneur should prioritize.
Workers Compensation Insurance
As an entrepreneur, you should acquire workers’ compensation insurance immediately after hiring your first employee. This policy covers medical expenses if a worker sustains an injury while in line of duty. Even if you don’t deal with machinery in your business, workers can slip and fall on a wet floor and sustain severe conditions such as carpal tunnel syndrome, resulting in pricey claims.
Business Interruption Insurance
If a catastrophic event or a disaster occurs, normal business operations will be interrupted. During this time, your business will incur financial losses due to workers’ inability to access the office. Business interruption insurance is essential to businesses that require a physical store or office to conduct operations. This insurance policy will compensate a business for all financial losses suffered due to business interruption by unforeseen events.
Professional Liability Insurance
This cover is also known as error and omissions insurance. Negligence claims can strain your business financially. This insurance protects enterprises against negligence claims due to professional mistakes or failure to perform. Each industry has unique needs for professional liability insurance. For that reason, liaise with your insurance agent to customize your policy.
Vehicle Insurance
If your business has a fleet of vehicles, they should be insured to protect your business from liability in the event of an accident. If your business uses automobiles in business operations, there is a greater need to acquire enough policy to avoid losing business assets and income after an accident.
Property Insurance
Whether your business owns or leases business premises, it is paramount to have property insurance. Property insurance comes in handy in the event of theft of a company’s property or destruction by fire or storm. However, you will be required to acquire additional policies to protect your business from mass destruction events like earthquakes and floods, which are not covered by property insurance.
It is imperative for a business person to have the right insurance to avoid financial loss due to a catastrophic event or a lawsuit.
You must be logged in to post a comment.