There are extensive risks associated with operating a business therefore you should take precautionary protective measures by purchasing insurance policy. Without the right safeguards, an accident or natural disaster will destroy your business through huge financial liabilities. There are different hazards in varying types of businesses so it is important to get a tailored insurance cover. Here are the main types of business insurance that should be in place for every business.
The worker's compensation should be included in your business's insurance cover as soon as you engage an employee. This cover is mandatory for every legal operation and it is subject to pertinent legislation within your state or territory. The insurance compensation is designed to cover medical treatment, disability and death benefits when an employee is dies or is injured as a result of business operations. You should ensure that the cover is adequate and the service provider should be an approved insurer.
The professional liability cover is also referred to as errors and omissions insurance. It is designed to protect your company from potential negligence claims which may result from poor performance or employee mistakes. This policy should be tailored according to your commercial sector because the concerns vary in different industries.
Property insurance is critical whether your business owns the premises or you are simply leasing it. The policy will cover losses and damages to the inventory, equipment, general furniture and signage. These events may occur during incidences of fire, burglary and robbery as well as storms. It is important to note that incidences of mass destruction are not covered in the standard property policies. If you live in a vulnerable area, you should consult your insurer for a separate cover.
Auto accidents are associated with financial and legal liabilities therefore you should protect your business sufficiently. Your company vehicles should have a comprehensive cover and at the very least, be insured against third party injury claims. Normally, if your employees drive their own vehicles for business purposes, their personal insurance can cover them if an accident occurs. However, there is an exception to the policy if the vehicle is delivering goods and services for money.
Disruptive events such as natural disasters or catastrophes will affect the normal operation of businesses. If the employees cannot come to the commercial premises, the company will lose returns. The business disruption insurance will compensate for the income lost during that period. Note that this cover is ideal for operations that need a physical base.