Unforeseen circumstances that occur anytime when it comes to running a business. However, with the right insurance covers, you can scale through such times without tears.
At face value, the decision not to purchase an insurance package may seem like a smart money move; after all, you’re saving money. But that’s quite on the contrary. Insurance is so important, so much so it could even be the difference between the death and longevity of your business. Therefore, getting insurance is a sure way to have peace of mind. With insurance, you can rest assured that no matter what happens, your business will keep on grinding.
On that note, we will be looking at the different types of insurance packages you should get to help protect your business from damages. Let’s get started:
Business owner’s policy (BOP)
BOPs include coverage every business owner needs. It contains vehicle coverage, business interruption insurance, liability insurance, crime insurance, and property insurance all in one package. However, you can choose what you want in a BOP according to your specific needs. Why this policy is attractive is that it allows you to spend less than if you were to buy these individual policies separately.
If you own or have rented a place for your business activities, and you also have inventory, equipment, and other physical assets, then you need property insurance. It covers against theft, vandalism, storm, fire, smoke damage, and so on. This insurance does not cover floods. That’s another type of policy. You will need flood insurance if the area your facility is located faces such a risk.
This policy is for you if you’ve rented your building for private or commercial use. It provides protection against injury within the property, damage to the physical property itself or to the items within the premises.
Home-based Business Insurance
Do you own a house? Then you will have taken a step in the right direction by buying Homeowner’s Insurance. It protects you against damages to the building or to any property inside it. However, if you decide to run a business from home, then you also need additional insurance referred to as Home-based business insurance.
Business Interruption/Loss of Earning Insurance
In the event that your business cannot operate for a period of time due to some incident, you can cover the income loss with this insurance. It’s especially necessary if you operate from a fixed location, such as a retail store.
General Liability Insurance
No matter the type of business you run, people can claim that your employees, products, or services have caused them harm. Therefore, this policy covers Property Damage or Bodily Injury that the afore-mentioned have caused or allegedly caused a third party. It also covers your defence.
Product Liability Insurance
Even when you have taken all measures to ensure that the products you offer are entirely safe, a consumer might still have a bad experience. That’s why it’s important you get product liability insurance. It covers any damages your product may have caused a consumer. It is tailored according to the type of product you sell.
Professional Liability Insurance
You can get sued for negligence should you fail to render or improperly rendering professional services. This is applicable if you own a service-based firm. Lawyers, hair salons, real estate agents, accountants, consultants, you name it, need this policy. General liability insurance does not provide defence or cover damages from such situations. This policy is therefore entirely different. It is also referred to as Errors and Omissions Insurance. It is tailored according to the nature of the service you render.
Commercial Auto Insurance
Does your firm own vehicles that are used for product or service delivery on a regular basis? Then you need this insurance. It’s also required if you own vehicles that transport inventory or carry your employees. In a situation where your workers use their own cars for your business activities, and they probably don’t have insurance or have inadequate coverage, you should consider getting Non-owned Auto Liability insurance to protect your firm.
This policy gives protection (medical benefits and wage compensation) to employees who are injured while carrying out their duties. If a workplace accident happens, the employee surrenders his rights to sue the employer. It is therefore important to get this insurance so as to save your firm from facing legal action.
Directors and Officers Insurance
When the actions of the directors and officers of your firm have brought legal action against them, D&O insurance covers any damages brought about by the lawsuit. It also covers defence costs.
Data Breach Insurance
Your firm might keep sensitive data or private information that pertains to clients or employees. You are charged with keeping such data and information safe. Whether they are kept in paper files or stored on servers or computers, it’s possible they can get into the wrong hands, in which case data breach is said to have occurred. Data Breach insurance will cover damages and costs incurred from a lawsuit should such a situation arise.
With life insurance, you have peace of mind that your loved ones will not face financial difficulties in the event of your untimely demise. The insurer will have to pay the named beneficiary upon your death. This type of insurance is important whether or not you are a business owner.
Running a business means taking calculated risks, but there are events you can’t control. Lawsuits, accidents, theft, vandalism, fire outbreak, and natural disasters can happen at any time. By having all the necessary insurance packages, you can protect your business from heavy financial loss and ensure continuity.