3 Types of Insurance Every Business Needs
Being in business carries several risks that owners need to take into account. Companies need to protect themselves against certain losses incurred due to unforeseen circumstances. Employees also need to be covered while performing services for the company. We explore the three types of insurance policies every business should have.
Property, Vehicle, and Equipment
Covering the physical aspects of the business is a logical step. Being protected from unprecedented events such as fire, theft, or water damage is vital for all organizations. Vehicle cover is especially important if you have delivery vehicles or your staff use company cars while performing their duties.
The best cover would be fully comprehensive, which would cover the vehicle in cases of accidents as well. At the very least, you should take out cover for third-party injury. Most policies also cover car rental should one of your vehicles go in for accident damage repairs.
The same could be said for property insurance, and you want to be covered for even the most unexpected events. According to the recommendations on BrokerLink Insurance, you should discuss your needs with a broker. In this way, you can rest assured that you have adequate cover for your business.
Professional Liability
It’s commonly known as errors and omissions (E&O) insurance. It protects the business, its owners, and employees against clients’ claims for negligent actions or inferior work. The insurance policy covers legal costs and settlements up to certain amounts as per the policy stipulations.
Regardless of which industry the business operates in, this is a standard cover that should be in place. You might not imagine that it’ll ever happen, but if things don’t go as planned, customers can file lawsuits.
It’s recommended to have this professional liability policy in place to prevent the interruption of business or even the company’s closure due to legal action.
Workman’s Compensation
All employees are entitled to sickness and accident insurance. It will cover medical care, disability, and even death benefits. If any worker gets injured or falls ill on the job, business owners need to cover any claims filed, or lawsuits that might develop. Should a legal claim be laid, the fees could reach millions.
Without insurance, companies face the risk of bankruptcy if ordered to pay. Every organization should consider this as the most important cover to have. Even if your environment is low risk, simple slip-and-fall injuries could become expensive.
In Summary
Business is tough in general, and the last thing any company needs is to lay out money for damages. Arrange cover for your property, equipment, and vehicles to cover losses caused by fire, theft, or other unexpected situations. Professional liability will give you a backup should a customer lay a claim against the business for negligence.
Lastly, make sure you have workmen’s compensation for those unpredictable circumstances when an employee gets injured on duty. No one can predict the future, but it’s better to be prepared for the worst rather than face the financial consequences that could cause your business to close.