When you are running or opening a business, regardless of the size or the type, many things can go wrong. And even though no one likes thinking about it, being prepared is very important, and one of the key factors that determine the success of any company. But we can all agree that providing protection for your employees, your business, your property, your assets, and yourself is about much more than simply “good business” and Protect Your Business.
Depending on the size of business you are running, and, also, depending on your properties and assets, there are many different types of insurance policies businesses can get, to allow themselves to grow carelessly. Here are seven of them, which offer a variety of coverage options, but may be equally important in different situations and for different types of businesses.
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1. Commercial Property Insurance- Protect Your Business
Unless you have a very small business that you run from your apartment, you must invest in a business property insurance policy. Most businesses have some type of equipment, inventory, property, for a variety of operations – stores, magazines, offices, gyms, healthcare objects, etc., and protecting them can save them both money and time, and enable efficient and uninterrupted workflow.
A good business property insurance should provide you with cover for all of your commercial property, as well as any potential income interruptions. It can cover anything you need to do business, including equipment, furniture, inventory, etc.
2. Commercial Auto Insurance
If there are vehicles in your company, used by you or your employees, a commercial vehicle insurance policy is another type of policy that you should consider investing in. While it’s similar to property insurance, it may also include coverages much more specific to vehicles, including rental reimbursement, towing, collisions, property damage, etc., as well as injuries. Additionally, you can get coverage for vehicles you don’t own.
3. Tools and Equipment Insurance
A lot of industries and professions rely on the use of expensive tools and equipment. If they are stolen, or damaged, not only may it cost you a lot to replace or repair them, but it may even interrupt your operations. So, any professional or any business that uses such items for their work should get tools and equipment insurance.
4. Worker’s Compensation Insurance
One of the essential, and required by law, elements of an insurance package for small businesses, worker’s compensation insurance typically covers medical expenses, as well as lost wages. This type of policy is designed to protect both your employees and you, which is why they include employer liability insurance. Additionally, it can include rehabilitation, survivor benefits in case of a worker’s death, etc.
5. General Liability Insurance
When it comes to protecting your company, general liability insurance is probably the most important component of your insurance package, which is why it’s also the most common one for small businesses. This policy helps protect small businesses from liability claims, including injuries to clients and customers, damages to someone else’s properties, etc. Regardless of the industry, every business can face some of these risks, and this policy provides financial protection in case you are held responsible.
6. Professional Liability Insurance
Even the best professionals sometimes make mistakes. If a client sues you for professional negligence, regardless of whether you have made the mistake, or they feel like you, a professional liability insurance policy, also referred to as an errors and omissions insurance policy, will cover it. It will also cover any legal fees for defense or legal judgments.
7. Business Interruption Insurance
Some damages to your business can happen through no fault of yours or your employees. Business interruption insurance policy protects your business and your employees, in case of damages due to earthquakes, weather phenomena (heavy storms and winds), accidental business interruptions such as fire, etc. As the name suggests, it’s designed to protect your business against interruptions, covering payroll, taxes, operating expenses, etc., and paying for it can stand alone, or it can be a part of some other type of policy.
Before you make any big decisions on what kind of insurance policy you want, you should learn as much as possible about your business’ potential risks. This way you can determine exactly what kind of protection your employees, you, and your business need. Aside from the above-mentioned, there are other types of commercial insurance policies that you can get.
Alternatively, you can buy a package or a combination of insurances that suit your particular situation best. A package should also be less expensive. For instance, to protect your business, you can get a so-called business owner’s policy, which includes business property insurance and general liability insurance.