Having the right insurance at the right time can save your business thousands of dollars in legal fees. If you’re new to owning your own business, you may not have all the information you need to properly protect your investment.
Research is the best way to learn about running a business with as little risk as possible. Take the time to begin your research now, and check out a few of the most important types of insurance your business should always keep current.
Workers’ Compensation Insurance
If you have any employees in your business, you need to have workers’ compensation insurance. Workers’ compensation is a legal requirement for business owners running an operation with employees, even if you don’t see that the job could be dangerous in any way.
If someone gets hurt on your clock, you are responsible for rectifying the issue. That means your business has to pay all the medical bills and lost wages associated with the injury. When you have workers’ compensation insurance, your insurance policy will cover the costs.
Professional Liability Insurance
You can’t always be there to watch over the actions of all of your employees, and there’s room for error in the delivery. Professional liability insurance (or errors and omissions insurance) will protect your business from damage done to customers by your employee’s failure to perform.
You should also know that there is no one policy that fits every business format, so you’ll have to work with your insurance provider to craft the best suited policy for your operation.
Whether you own or lease the property that your business uses, you’ll need property insurance to cover your tail if a problem arises. Property insurance will cover your equipment, signage, inventory, and furniture if there is a fire or storm that damages your business.
Just be in the know about the fact that most property insurance policies won’t cover flood or earthquake damage. If it’s likely that these issues could arise, you’ll need a separate policy to cover the possible damage.
Product Liability Insurance
If you run a business that makes its own products for sale, then you need to carry product liability insurance. Product liability insurance will guard against possible issues that may arise if someone is injured by your product. Protect your business wholly, and don’t leave out vital insurance puzzle pieces like this one.
Business Interruption Insurance
If your business does suffer the incursion of a natural disaster, you will likely have to shut down shop for a while. The interruption of your business doesn’t have to cost you thousands of dollars. When you have a business interruption insurance policy, the insurance company will reimburse you for the lost income suffered.