Shelling out for business insurance is not something anyone really wants to do, but when something unexpected happens within or outside of your business, you’ll be glad that you have it. Unfortunately, there are many companies out there, especially new ones, that are not adequately covered. Their reasons for not being covered properly might stem from not wanting to pay or simply not knowing. Thus, the following list includes the various types of business insurance plans that your business needs to have in order or to protect yourself and your business.
When you hear the word general, you might assume that this covers anything and everything. However, the actual coverage is more focused on accidents occurring within your place of business rather than an umbrella of your business risks. So then, what is general liability specifically needed for? Accidents such as slips and falls, or injury caused by an in-store ad can cause you thousands or even hundreds of thousands of dollars in damages. Understandably, this can literally make a small business close their doors for good. Although proper cleaning and organization are encouraged to avoid these types of injuries in the first place, you are still required to invest in a general liability insurance program.
As a business owner, one of your responsibilities is to make sure that your business has a well-crafted budget. It’s easy to budget recurring things such as monthly utility bills, the rent, and worker compensation. However, there is one thing that you can never budget for as you will never know the price of damaged property until it is inspected and fixed. Thus, the reason why it is so important to obtain property insurance for your business. Natural disasters such as hurricanes can severely damage parts of your property, such as the roof. In other cases, such as a burglary or vandalism, you may have to replace important security parts of your business, such as doors, vents, or outdoor lighting.
If you’re a business that needs to constantly be on the road either delivering items or simply to transport your employees from one job site to another, you’re going to need car insurance, aka commercial auto insurance. This will allow you to protect various vehicles such as cars, vans, and SUVs that you use to transport your product or services. Now, say that you don’t have your own company cars and your employees drive their own. Car insurance should still be purchased as any auto accident victim can turn around and sue your company rather than the employee. Comparative fault states have different ways of determining who pays what in the event of an accident. Thus, it is important to make sure that you read the coverage carefully.
Worker’s compensation protects businesses when an employee is injured on the job. This protection is essentially a win-win situation that used to cause companies thousands of dollars. For example, if an employee is injured on the job, they can then request worker’s compensations and be provided with the necessary funds to not only pay for their medical expenses but also to supplement their lost wages from having to stop working.
Product Liability Insurance
If your company produces a product, there is always going to be a chance that your product will hurt someone or damage property. Thus, it is imperative to obtain product liability insurance. No matter how safe your product may be or how many precautions you take, there is still the possibility that something will happen. Since there are countless ways an item can cause harm, it is important to make sure that you obtain the right plan. Fortunately, you can work with your insurance provider to craft the best plan for your particular business and type of product.
Like many start-ups, your company might begin from your home rather than an official business building. Unfortunately, business property insurance won’t be able to cover this as it is not a commercial area. Thus, it is crucial that you speak with your insurance provider to add your home business to your existing property insurance.
Starting a business for the first time is no doubt a daunting experience. However, the first thing on your mind should be protection. Thus, it is important to utilize the information above in order to make sure that not only are your personal finances protected but also your company.
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