Your business, just like your home, your health, your life and your vehicle, needs to be adequately insured to provide you the best protection against the unforeseen. If your business isn’t properly insured against devastation and liability, you could end up in a serious jam. Many businesses shutter their doors completely after an expensive incident that they were forced to pay for out-of-pocket. But there are many different types of insurance policies that offer different levels of coverage for your business. Which ones should you seek out for your business? Continue reading to find out.
This is easily one of the most essential forms of insurance that is used to protect businesses. Whether the business owner owns or leases the space that their enterprise occupies, property insurance is 100% vital to protecting it. Property insurance covers damages related to catastrophes such as:
- Storm damage (winds, rains, hail)
If you live and work in an area where flooding and earthquakes are a reasonable concern, you will likely need to pay extra to get this type of additional coverage. Most standard property insurance policies will not cover earthquakes or floods.
Errors and Omissions Insurance
Otherwise known as professional liability insurance, errors and omissions insurance protects the business in the event of someone being harmed due to negligence on the business’ part. This type of insurance is just as important as property insurance, but it can be trickier to get exactly the type of coverage you need. Each industry has its own set of concerns, so you need to address those matters with the insuring agent you’re working with.
Generally speaking, work vehicles cannot be adequately covered (or covered at all) under a personal auto insurance policy. That’s why vehicle insurance for workplace vehicles is so important. At the very least, business vehicles should be insured to cover third-party damage (liability). But a comprehensive insurance policy will completely insure the vehicle to the point of replacing or repairing it in the event of an accident.
If an employee becomes injured or dies while on the job, worker’s compensation saves the business owner from having to shell out medical and other expenses out-of-pocket. If you have even a single employee working for your business, you need to purchase a worker’s compensation insurance policy to protect them and/or their loved ones in the event of a workplace accident. Every enterprise that hires others should have this, even if the job seems low risk.
Business Interruption Insurance
If a natural disaster, for instance, makes it impossible for you to conduct business, business interruption insurance will cover the lost funds that you and your employees wouldn’t get if you weren’t protected by insurance.