It is just as important to insure your business as it is to insure your home. A business owner must take precautions to protect himself and his business in case an unfortunate incident were to occur. However, this does not mean that only one type of business insurance will cover every event that may happen. There are different types of business insurance coverage and each is equally important. These are six types of insurance that every business owner should carry.
Property insurance will replace or repair any business property that becomes damaged. This includes the property the building sits on, the building, the contents of the building and the parking areas around the building.
If damage occurs due to a fire, storm, or theft, property insurance will cover it. Although, you may need to purchase a separate policy to cover damage caused by floods or earthquakes.
Professional Liability Insurance
Professional liability insurance is needed when someone files a claim against the business for failing to perform services as promised. If a business is unable to perform a job correctly or complete a job on time, this insurance will cover claims that are filed by unsatisfied customers or those who say they suffered harm from negligence of the business.
Product Liability Insurance
Product liability insurance is similar to professional liability insurance. However, it provides coverage if someone files a claim that they are harmed from the use of a certain product the business sells. If the business sells only a specific type of product, this insurance can be customized to cover that product fully.
Workers' Compensation Insurance
Workers' compensation insurance is a definite must for any business that has employees. If an employee becomes ill or is injured while on the job, this insurance will cover all expenses that are a result of the illness or injury. This includes medical bills, loss time at work and any other expenses that are acquired due to this specific incident.
Vehicle insurance is necessary for those businesses that have company vehicles. It is a good idea to carry full coverage vehicle insurance on company automobiles so that everything is covered should an accident occur.
At the very least, a business owner should carry liability insurance that will cover the expenses of another party that is injured through the fault of the employee driving the company vehicle.
Business Interruption Insurance
If a catastrophic event causes the need to temporarily close a business, this results in lost profits for the business owner. However, if the business is covered by business interruption insurance, the business owner will be compensated for the lost income during the time the business must be closed.
Owning a business requires a lot of responsibility. The most responsible business owners will carry the necessary business insurance so they are covered if an unfortunate event occurs.Share