Since the day a businessman starts operating his business, he is exposed to different types of challenges. A business still remains at risk even before they hire their first ever employee thereby increasing the need to get the perfect insurance policy coverage. A single catastrophic event or a lawsuit could be more than enough to eradicate a business firm without even giving it an opportunity to stay afloat. However, it is fortunate enough to note that there is a wide array of insurance policies to safeguard them against all such impediments. Take a look at few insurance types which a business should have in order to protect itself from unforeseen emergencies.
1: Professional liability insurance
Professional liability insurance is also called errors and omissions (E&O) insurance and this protects a business firm against any kind of negligence claims due to abuse caused from errors or lack of good performance. With regards to professional liability insurance, there’s no policy which fits for all businesses alike. Every single organization has its own priority levels which need to be taken care of in a personalized policy that’s tailored to meet the needs of a business.
2: Worker’s compensation insurance
Once you hire the first employee, the business should immediately add worker’s compensation insurance to its portfolio. This covers death benefits, disability, medical treatment if the employee gets hurt or if he dies due to his type of work in the business. Even though you may feel that the employees are engaged in work which involved low-risk, few medical conditions like Carpal Tunnel Syndrome or slip-and-fall injuries can lead to an expensive claim.
3: Property insurance
Whether a business owns a space or leases it, getting property insurance is a must. This insurance coverage covers signage, equipment, inventory and furniture in the event of a storm, fire or theft. But that doesn’t mean that events like earthquakes, floods which lead to mass destruction will be covered. In case your business is in such an area which is prone to such natural disasters, check with the insurer to offer you a separate policy.
4: Product liability insurance
If your business is involved in some kind of product manufacturing which is given for sale in the market, you should definitely have product liability insurance. Even though you’re a business which takes every single measure to ensure that their products remain protected, yet you can suddenly find your name involved in some lawsuit which might be a result of a damage caused by some of your products. Hence, having product liability insurance protects your business during such events.
5: Vehicle insurance
If the vehicles of a company are used, they should be having adequate coverage to safeguard business against the accountability in case it meets with an accident. Businesses need to insure against 3rd party claims but it may also have comprehensive insurance which can cover the vehicle in any accident. In case the employees use their personal vehicles, their personal insurance policy can also cover them.
So, when you have the right business insurance policy, you can let your business avert any major fiscal loss due to some catastrophic event. Check with the insurance company to know which kind you should get for your business.