5 Types Of Insurance You Should Have For Your Small Business
When you’re the head of a business, a lot of responsibility falls on your shoulders. Your business needs someone who can foresee trouble, so the trouble never actually hits full force. Insurance is the best way to forge such a situation.
If you’re new to business ownership, it may be difficult to sort out all the different needs for coverage. Make it easier on yourself, and check out a few types of business insurance you’ll need to take care of all the common possibilities.
Workers’ Compensation Insurance
If you own a business that employs workers, it is required (in most places) that you carry workers’ compensation insurance. You don’t want to be caught in breach of employment laws, so make certain you are current on your workers’ comp policy.
In addition to the legal requirement, carrying workers’ compensation insurance is the ethical choice for business owners. You should care enough about your employees to make sure they’re protected in the case of an accident.
Business Interruption Insurance
In the case of a natural disaster, your business may not be operational for a bit. Business interruption insurance is poised to reimburse business owners the money they lose from being shut down.
Business interruption insurance is more crucial for business owners who run a brick and mortar establishment. However, it can be helpful in other situations.
Product Liability Insurance
Product liability insurance is a helpful tool in the case of a product malfunction or failure. No matter how well you look after your operations, things can go wrong.
If a product or service your business provides injures a consumer, then you will be liable for reparations. A bad product isn’t good for business either. Let your insurance company handle the situation, and avoid a lengthy court battle.
Professional Liability Insurance
Professional liability insurance is also referred to as errors and omissions insurance. You’ll need this policy in place should one of your professionals misrepresent your product or leave out crucial information while conversing with a client.
You’re under the restraints of a contract that says you are liable for explaining the full and true picture of your product or service. Failing to meet that requirement is a breach of business law.
Property insurance is good to have so you can protect the physical things that keep your business running smooth. When you have property insurance, you can be assured that your equipment, signage, and other materials will be restored in the case of theft or fire.
Property insurance usually doesn’t cover things like earthquake and flood damage, so make sure you have provisions for those circumstances too.