Every new business is exposed to risk from the start which is why it is vitally important to have the right type of business insurance in place before the first employee is hired or the first contract signed. Small businesses are particularly vulnerable as one catastrophic event or a major lawsuit could wipe out an entire business. That is why there are numerous types of business insurance that are designed to protect business owners against these risks.
Below are some of the most important types of insurance a new business should have in place to ensure that it gets off the ground with minimal risk of folding due to unforeseen problems.
Professional Liability Insurance
Also known as E & O (Errors and Omissions) professional liability insurance is designed to cover a business when claims for negligence are lodged against a company due to harm from mistakes made or failure to perform. Each industry has its own type of policy customized to address the particular set of concerns of an individual company.
The second most important type of insurance to have in place is property insurance that covers the property housed on business premises in case of fire, theft, or storm. This includes furniture, equipment, inventory, signage, and anything else listed in the policy document at the time of the incident. Floods, earthquakes, and other natural disasters are normally not covered under standard policies and should be covered on a separate property insurance policy.
Business Interruption Insurance
In the event of a major catastrophe or disaster normal business operations will most likely be interrupted during which time the business will suffer loss of income. This is usually due to the inability to carry on business from the premises such as manufacturing products, making sales, or staff being unable to carry out normal business transactions. This type of business insurance is particularly applicable to businesses such as retail stores that require a physical location to carry on their business. A business interruption policy will compensate a business for loss of income during catastrophe or disaster.
Worker’s Compensation Insurance
Worker’s compensation insurance is vitally important for companies with employees. It covers an employee for medical treatment and disability in the event of injury and death benefits in case an employee dies as a result of working for the company. Even in a seemingly safe environment minor injuries like slip-and-fall or carpal tunnel syndrome involve the company in costly claims.
Product Liability Insurance
Product Liability Insurance is essential for any company that manufactures products that are for offered for sale on the general market. Product Liability insurance protects a business against costly lawsuits due to damages caused from the use of one of its products. Coverage can be tailored to suit a specific type of business and product.
Vehicle insurance is necessary to fully insure company vehicles and protect the business against third party liability due to a motor vehicle accident. Comprehensive insurance provides full coverage against theft, damage, and injury. Third-party injury is a type of insurance that offers minimal coverage against claims from another person injured in an accident. To know more contact us or visit the website at https://procominsurancecompany.com/.