Did you hear the one about the business owner whose premises went up in flames? Dang, he thought. Never mind. The business is insured. She’ll be right.
He was insured- that much was true. He was not, unfortunately, insured against fire.
His business? Paper products.
Having insurance is one thing, having the right kind of insurance another entirely. In order to choose the insurance that best suits your business, and will ensure you aren’t left in the cold after a catastrophe, you need to take a close look at the kinds of incidents your business is most vulnerable to. The chap peddling paper products should have made Property Cover his number one priority. Property cover insures against damage to buildings, contents, and stock caused by fire.
Hmm, you think. I run a web design business. My office is in a city skyscraper. I’ve never heard of anyone in my building losing their merchandise or equipment due to property damage. In that case, you can perhaps give Property Cover a wide berth without losing too much sleep at night. The most relevant insurance coverage for your business is Computers and Electronic Coverage, which will ensure that you’re covered in the event of theft, accidental breakdown, fire, and interruptions to business.
Some businesses, for a variety of reasons, are more vulnerable to employee theft or dishonesty than others. Perhaps you have a large turnover of staff. Maybe your employees work without supervision around sensitive company information or cash registers. Maybe they even have access to bank account details. Yet, there will still be a number of things that you’d need to take care of while running your business.
To cut it all short, businesses need to be insured. Only because you have invested a large chunk of capital does not mean that your work is over. You need to take further steps and get insurance for your business to keep it covered and protected during unforeseen circumstances in the future.
Seven types of insurances for businesses:
1. Professional liability insurance
Professional liability insurance is a customized fit-for-businesses plan that covers the company from negligent claims, caused due to malfunctions or performance of the business altogether. There is no uniform or universal liability insurance plan to fit all types and sizes of businesses. Instead, a business can address its own claims and issues with a customized liability insurance coverage pertaining specifically to that business itself.
2. Property insurance
Whether you are working in an office space or from home, property insurance for any business is essential. Property insurance for businesses covers inventory, furniture, equipment, signage, against man-made disasters such as fire or theft. Natural calamities or mass-destruction events like floods, earthquakes, cyclones, etc. are not included in the standard property insurance plan. Always make sure to check with the insurance company before finalizing on your business’ property insurance.
3. Workers’ compensation insurance
As much important it is to take care of your business, equal importance must be given to the care and concern of your employees. Every business must ideally have a workers’ compensation insurance scheme incorporate into their business insurance policy. This covers medical treatments, disabilities, death benefits and other on-site and on-job accidents and risks.
4. Home-based business insurance
For people running their businesses from their home, no homeowners’ insurance policy will take care of your business inventories and other equipment in your home. Home-based businesses have to be covered under commercial property insurance itself. Ask your insurance company for additional insurance that can cover your home-based business’ inventory and equipment.
5. Product liability insurance
A product liability insurance plan is for businesses that are involved with selling products in the market. Because there is always a constant risk of product damage, loss, and consumer complaints, product liability insurance will keep your business’ products covered. The aim is to keep your products safe till the time it reaches the consumer’s hand.
6. Vehicle insurance
This is primarily for businesses that operate largely using work vehicles, such as manufacturing businesses that need materials to be moved from one location to another. Such work vehicles must be fully covered in case of accidents and other road mishaps. Vehicle insurances come to great use while moving goods and products from the production unit to the markets.
7. Business interruption insurance
While you’re taking care of everything else, don’t let the operations of your industries skip your mind. For uninterrupted operations and performances of businesses, a business interruption insurance plan will cover up for your losses caused due to staff’s inability to work, manufacture products, or make calls.
In the end:
A business can avoid a great amount of loss with these basic types of insurances for businesses. It might look meager, but insurance policies carefully drafted for small and large businesses can greatly help protect your interests. Check with your insurance company to determine the best insurance plans for your business.