From the day an entrepreneur opens a business, they expose their business to a lot of tasks. Some businesses such as https://independencetowtruck.com/ may face more risks than others. Even before the first employee joins you, your business is already at risk. A catastrophic event or a lawsuit can wipe away a small business. Fortunately, companies have access to a vast array of insurance options that can protect them from different risks.
Although through insurance covers what most businesses need, each business has its own set of risks and specific insurance solutions it needs. Deciding between these many types of available coverages can be quite overwhelming and confusing. Here are some essential insurance options that a business can seek to be more secure.
Professional liability insurance
A professional liability insurance is also known as errors and omissions (E&O) insurance. It is a type of insurance that covers a business against negligence claims that happen due to mistakes or failure to perform specific tasks. As far as professional liability insurance is concerned, there is no one-size-fits-all policy. Each industry has its particular concerns that can be addressed in a customized personal liability insurance.
Property insurance is a must if a business owns or leases its space. Property insurance covers issues including signage, equipment, furniture in the event of a fire, inventory among others, all protected against calamities such as theft and storm. Note that standard insurance option doesn’t cover a business against significant disasters such as flood and earthquakes. If your area is prone to these considerable calamities, you may need to check with your insurer for a separate policy.
Workers’ compensation insurance
Once you have added your first employee, you can think about workers’ compensation insurance. This type of insurance covers issues such as medical treatment, death benefits, and disability, in the event a worker is injured or dies from the line of duty associated with your work. Even if employees are performing in a low-risk area, the may be susceptible to risks such ad falling among others.
Product liability insurance
Product liability is a must if your business manufactures products for sale to the general public. A business may take all the necessary measures to protect its product, but still may find itself dragged in a lawsuit that involves these products. A product liability insurance will come in handy to protect a business in such cases with this coverage safeguard all issues associated with the product.
Business Interruption insurance
If a catastrophe or disaster happens, business operations are most likely to be affected and will suffer. During this time when a business is not in service, it is expected to be making losses because of the staffs’ inability to access the offices, manufacture products and make sales. A business interruption insurance is entirely applicable to companies that require a physical location when doing their business. When a business has the right coverage in place, it can avoid significant financial losses due to catastrophe and lawsuits.