Don’t Start a New Business Without These 7 Vital Types of Insurance
From the moment you open a new business, you’re opening up to endless risks.
The business can fail within the first few months; more than 4 in 5 new businesses do.
You could also encounter a fire or flood that brings down the entire premise and / or destroys your goods or equipment.
Getting the right insurance cover is the first line of protection in case of any eventualities.
The following are seven affordable liability business insurance covers to consider.
Types of Business Insurance
1. Professional Liability Insurance
Also known as Errors and Omissions (E&O) insurance, professional liability insurance covers you and your business against claims related to non-performance and questionable quality of performance. For instance, if as a plumber the pipes you recently fixed burst and cause water damage, this policy will cover you.
2. Workers’ Compensation Insurance
Workers’ compensation, or workers comp, is a type of business insurance that protects employers in the event that an employee or a group of employees sue for liability. For instance, if an employee falls and breaks an arm during work, the employer is liable for medical and other compensations. Workers’ comp covers these costs.
3. Property Insurance
Property insurance covers just that – business property. These might include computers, inventory, supplies, equipment, and the building. The insurance covers these items in case of vandalism, fire, theft, and weather. You can also choose to insure your property against earthquakes and floods.
4. Business Interruption Insurance
Disasters are never far away. Things like fires and floods could be experienced without notice. Aside from getting property insurance to cover lost items, you should consider business interruption insurance to cover any loss of income caused by these situations. For example, if a fire razes down your store such that you remain closed for a week, the insurance would cover the lost income.
5. Health Insurance
This should have actually come at the top of the list. You need sufficient health insurance for both yourself and your workers to survive the rigours of establishing and running a business. It can be expensive yes, but statistics show that unhealthy workers cost employers some $160 billion per year. Getting them health insurance can help offset that cost.
6. Commercial Auto Insurance
Most companies have business cars, and for a good reason. It’s critical that you purchase commercial auto insurance to cover these cars. This way, any accidents or incidents won’t give you sleepless nights. Not only will the policy cover the cars, but also the employees driving those cars.
7. Product Liability Insurance
Finally, another very important type of business cover to consider is product liability insurance. This is especially true for manufacturing businesses. The policy will cover you and the business in case one of your products causes damages or undesired side effects during use. For instance, if you manufacture drugs and one of your drugs is mentioned in a liability lawsuit, product liability insurance will cover the damages.
Don’t Wait until it’s Too Late
Find out which of these insurance covers you need and purchase them before you roll out the business.
About the Author Jess Nielsen
Jess has spent years travelling the world full-time. Nothing else comes close to the reaches of this emotive activity...