As a business owner, you should ensure that you are covered in the event of any accidents or disasters. If you don’t, your business could seriously suffer financially later on. Consider discussing all of your insurance plans with your business lawyer before signing the policy. Below are the most important types of business insurance your company should have at all times.
Having property insurance is important for any business, whether you have a dedicated office or run your business from home. Property insurance protects anything inside the office space, like furniture, computers, and any other equipment. You can also get additional coverage for the outside of the building to protect signage or other outdoor items. Your property insurance should cover you in the event of theft, fire, or water damage. Without this, you may have to replace everything out of pocket.
A general liability policy will help to cover medical and legal fees that result from accidents on site. This policy should automatically cover visitors to the office, and you can add a personal injury clause to cover staff incidents. Often a general liability insurance policy will also cover defamation and slander to protect your business image. Most importantly, liability insurance can cover your legal costs in any arising situation. This can save your small business if something does happen.
If your business needs to cease operations for any length of time, business interruption insurance is crucial. As long as you continue making your insurance payments, you can claim the amount you would have profited during the shutdown period. This can be a lifesaver for many new and established businesses. Business interruptions can happen in the blink of an eye and for many reasons. From IT shutdowns, and break-ins to power outages. Ensure that your policy covers all possible instances, so you don’t have to worry during this critical time. However, be aware that viruses are not usually covered within these policies.
If you have employees, you should have workers’ compensation insurance. In fact, in many places, it is a government requirement. Accidents are bound to occasionally happen in the workplace, no matter how diligent and careful employees are. Workers’ compensation insurance ensures that your employees will receive financial aid for missed wages after an accident. It also helps to cover any medical bills. As such, many business owners often include workers’ compensation with their liability insurance. Especially as it also helps protect your company from any lawsuits claims that work conditions are unsafe.
If you regularly ship items to customers, or to other businesses, shipping insurance is critical. After all, you want your packages to arrive to the recipient in great condition, with no damage. However, sometimes things happen, and parcels get lost or damaged within transit. This can end up costing a lot for your business, especially if it is a larger order that you have to then replace. With shipping insurance, you can claim back the price of the item and the shipping.
There you have it, the most important business insurance your company should have. Depending on your business and the services you offer, some of the insurance policies above may not be relevant. There may also be other insurance policies you should look into, such as automotive insurance or cyber insurance that are more relevant for your industry. Either way, if you don’t already have insurance coverage for the key areas of your business, we recommend you get them as soon as possible. However, do your research and do not just sign the first policy you find. Consider the costs, coverage options and discuss them with your lawyer first.