8 Insurances You Must Have to Secure Your Business
Fortunately, the insurance market, today, has emerged with a plethora of insurance products that can be the saviors of enterprises against various unforeseen dangers. Listed below are a few insurance types that you must have in place to make your venture endure it all:
- Professional Liability Insurance
Commonly known as E&O insurance or Errors and Omissions Insurance, a professional liability insurance policy provides coverage to an enterprise against negligence claims arising from harm, which usually is a result of performance failure or mistakes.
- Property Insurance
No matter if your office is your property or a rented one, having a property insurance policy is a must to ensure good health of your business in the long run. This product provides coverage against the loss or damage to signage, furniture, inventory, and equipment resulting from theft, storm, or fire. However, this policy does not cover mass-destruction arising from calamities, such as earthquakes and floods. Thus, in case your property is located in an area prone to such dangers, do check with your insurer to provide you with a separate policy for the same.
- Workers’ Compensation Insurance
It is extremely imperative to add a Workers compensation insurance policy to a business insurance portfolio when even an individual is employed by the organization. This policy provides coverage against expenses incurred for medical treatment along with the death and disability benefits, in case an employee dies or gets injured due to the nature of his job with the organization. Even in case the employees are involved in apparently low-risk tasks, or they slip, fall, and get injured, or affected by adverse health conditions like carpal tunnel syndrome, the employer would be liable to settle pricey claims. Having workers compensation insurance proves to a boon in such scenarios.
- Group Health Insurance
The health of an organization depends on the health of its employees; thus, for any business to run smoothly, it is important for its employees to stay in good health. While it is essential for every individual to have a personal health insurance policy in order to afford good healthcare, not every employee in your organization would be capable of affording one. Thus, it is essential for you, as an employer, to bear the responsibility and have your employees covered under a group health insurance policy.
- Home-based Business Insurance
Like many other professionals, you may also be one who begins new ventures from your home. A home-based business insurance policy would cover your home-based venture just like commercial property insurance secures your business. Therefore, in case you are running your business from your home, contact your insurance provider for additional coverage that would cover the inventory and equipment, in case of an eventuality.
- Product Liability Insurance
If you are in the production business and manufacture products for sale in the general market, then having a product liability insurance policy is a must for you. Even an organization which takes every possible measure to ensure that its products are harmless for the consumers may have to face a lawsuit in lieu of harm caused by any of its products. A product liability insurance policy, in such a scenario, works towards the protection of a business by providing tailored coverage according to the kind of product manufactured.
- Vehicle Insurance
In case you have vehicles registered in the name of your company, it is essential for those vehicles to be insured against losses and damages arising from an accident or theft. Every business should at least insure its vehicles for third-party liabilities arising from bodily injury, the death, or property damage of a third person or party in the event of an accident, involving the insured vehicle. However, going for a comprehensive insurance policy would ensure the business protection against third-party liability due to accidental damages. If your employees are running their own cars for your business use, then their personal insurance would cover them in case of an accident. However, an exception to this coverage is that the employees should be delivering the goods and services intended for a fee. This clause includes the delivery personnel as well.
- Business Interruption Insurance.
The operations of any business are likely to be interrupted, in case a catastrophic event or a disaster takes place. In such a scenario, an interruption in business operations due to the inability of employees to work at the office, manufacture goods, or do sale promotions would lead to the loss of income. This insurance product is appropriate for businesses that need physical locations in order to operate, e.g. a retail store. A business interruption insurance policy, in such a scenario of disruption, compensates the insured business against the loss of income that it has suffered during the period.
To sum it up, having the right insurance policies in place can help you avoid major monetary losses arising out of catastrophic events or lawsuits. Thus, check with your insurance provider to know more about the kind of insurance products that are suitable for your business type and incorporate them into the insurance portfolio of your business as soon as possible.
By Rajeev Ranjan