Businesses are exposed to a lot of risks right from their inception. Even before a business starts rendering services or producing and selling goods it is already exposed to risks. Even before a business hires its first employee, it is staring down the barrel of closure due to risk.
This fact should compel every entrepreneur to insure their business right from its inception. While the cost of the coverage may seem too high to even bother, the alternative may prove to be even costlier in the long-term. In some cases, it may prove to be fatal to the business. As such, we are going to look at some of the must-have insurance policies for businesses.
Property insurance is the first policy every business should purchase. Granted that there are some businesses that are purely online business, there is a need to purchase this policy if you have a physical business set up regardless of whether you own the property or you are just leasing it. The policy covers the furniture, the equipment, signage, and the inventory from theft, fire, and storm. However, it is important to note that widespread natural calamities such as earthquakes and floods are not covered under such policies and if you need coverage you need to talk with your insurance provider.
Professional Liability Cover/Errors And Omissions (E&O) Insurance General liability cover is an important cover to have for any kind of business, even home-based and or online businesses. This policy covers the business owner and its employees against negligence claims emanating from property damage or physical harm due to mistakes or failures of the business owner or their employees.
Product Liability Insurance
This insurance policy is important for businesses that produce products for general use. There are numerous risks that accompany the usage of a product, even when all caution is taken to mitigate all possible risk. In this regard, having this coverage covers a business against possible claims for damages made due bodily harm or property damage caused by the use of product or services.
As soon as a business hires its first employee, they should purchase this cover. The cover functions to provide medical benefits and wage replacement for the employee in the event that they are injured or die while working for the business. Even when the work involved seems too low-risk to warrant this policy, just know that there have been known be slip-and-falls that resulted in expensive lawsuits.
Business Interruption Insurance
This cover is very important for businesses that require physical premises to carry out the business. In the event of a disaster or catastrophe that renders the workspace unusable, businesses will lose income as workers are unable to function productively. As such, this covers businesses from huge financial loses that emanate from such events.
It is common for businesses to collect information about their employees and customers in this era of information technology. Such businesses are charged with the responsibility of protecting the information, especially the non-public, sensitive information. This policy covers businesses against any data breach suits and losses.
If a company vehicle will be used, there is a need for the business to be fully covered. In this regard, businesses should at the very least opt for a third-party cover, which insures third-party injuries. However, a comprehensive cover is a good way to protect the company assets as it covers third-party injuries as well as the vehicle.
There are numerous other policies for businesses such as the home-based business policy and Directors and Officers Insurance. The onus is upon businesses to explore the insurance market and find the best product for their needs. To know more about us Visit now or contact us.