Have you recently started your own independent business? If so, you are probably realising there are a lot more responsibilities that come with self-employment than you originally thought. One of the biggest things that new business owners need to be aware of is insurance. This is designed to protect you and your company from big financial blows that result from unforeseen incidents. Moreover, insurance is a legal requirement in some cases. As such, in our article today, we are going to be discussing the 5 different insurance policies that every business should have. Read on to find out what they are.
1.) Workers’ Compensation Insurance
If you are going to employ one or more people for your business, then it’s mandatory for you to acquire workers’ compensation insurance. This coverage is designed to help employees if they are injured, become sick, or have their property damaged whilst working for you. Workers’ compensation will also supply wage replacement if a member of staff has been unable to work for several months/years because of an ailment they sustained after being employed by you.
2.) General Liability Insurance
Business liability insurance is a form of insurance which helps to safeguard your company from legal allegations made by members of the general public. It will provide coverage for everything from bodily injury to property damage. So, if a customer trips on the carpet in your shop and tries to sue you for causing them an injury, then your general liability insurance will protect you and mitigate the cost of any legal fees. As our society has become very litigious, this kind of insurance policy is more important than ever before.
3.) Professional Liability Insurance
If you work in the service industry (which the majority of people do) then you should think about investing in professional liability insurance. This coverage – also known as errors and omissions insurance – is designed to help people who have been sued for giving incorrect advice to their customers. If your information has caused somebody significant financial or physical harm, then you could be subject to serious legal accusations. Professional liability insurance will help to cover any losses, even when the allegations have no grounding.
4.) Property Insurance
Anybody that has business premises will need property insurance. This kind of policy will cover things like structural damage, inventory damage, equipment damage, and so on. If you live in an area which is prone to natural disasters, like flooding or earthquakes, property insurance might not cover you. However, for unprecedented events like fires, you should be protected.
5.) Product Liability Insurance
Businesses that sell products to the general market will need product liability insurance. Customers will sue your company if they have somehow been harmed (either financially or physically) by your products. Each brand must have its product liability insurance tailored to what they are selling, of course.
These are some important insurance policies that every business should have. Don’t be caught unawares – make sure that your company has the complete coverage it needs.