Investing in insurance coverage is your first defense against financial ruin, should an unfortunate event strike your business. The key is to find the right types of insurance to purchase. That’s right, that said “types.”
You’ll never get by in the business world with one insurance policy. There are many different facets of business, and there are many different policies from which to choose. Check out this quick look at a few of the most important types of insurance to carry when you own your own business.
Product liability insurance is aimed towards protecting your business against a faulty product. If your business produces a product and sells it to the general public, then you need to invest in product liability insurance. Your coverage will keep your business from being slapped with hefty fines and penalties.
If you run a business which requires some of your employees to use a vehicle, then you need to look into procuring a commercial auto insurance policy. Your employees’ well-being is your responsibility when they’re on your clock.
Should an accident occur (even if your employee is at fault), you have to face the repercussions of that collision. The responsibility and reparations will always come back to your business, so make sure you keep your commercial auto policy up to date.
Professional liability insurance is helpful when one of your professionals fails to properly present information to a client. Errors and omissions is another name for professional liability insurance, which better explains the purpose of the insurance.
You cannot always know that your professionals will do the right thing every time. Get professional liability insurance to make sure that you don’t have to pay for their indiscretions.
Property insurance isn’t solely for business owners running a brick and mortar business. The equipment you use to get the job done is property, and your insurance policy will pay to replace your property if something bad happens.
The most important aspect to understand about your property insurance coverage is what your policy specifically covers. It’s common that coverage doesn’t extend to businesses hit by earthquakes, wildfires, or floods.
Workers’ Compensation is a legal obligation in most places, and it’s a matter of ethics in others. Look after the future and well-being of your employees, and make certain that they will be taken care of should they be injured on the job.
The penalties your business could face if you are caught without a valid workers’ comp policy are not worth the pain. Keep up with your policy payments, and invest in the future of your employees.