Some individuals who are new to business may not understand the array of coverage options when it comes to building a safety net for your organization. Unbeknownst to most new entrepreneurs, there is no one insurance to cover everything pertaining to your business.
Educating yourself can create a more well-balanced umbrella of coverage for your investments. Here are a few helpful tips to get you closer to being “in the know” about the many different business insurance types.
Property Insurance
Cover the tangible items that contribute to your organization’s operations with a personalized property insurance policy. Even if you don’t have a brick and mortar establishment, you want to invest in property insurance.
The coverage offered by a property insurance policy will financially amend any damages to your office equipment, your inventory, and other materials you use to get the job done. Even a small business needs the protection of property insurance.
Business Liability Insurance
If something pertaining to your business harms someone, you can be held liable for any damages caused. Liability Insurance will cover your organization in the case of negligence or a defective product.
Liability will cover any cost of injuries incurred by your products or services up to the limit of your individual policy. Without general liability insurance, you run the risk of losing your business over a defective product or a bad employee. This insurance can cover the defense and damages against a lawsuit when your product or services are alleged to have injured or caused damage to others.
Business Interruption Insurance
Business Interruption Insurance will cover the financial losses that could occur due to a natural disaster or terrible event of sorts. Any situation that causes your organization to not be able to conduct business is typically considered in the realm of business interruption insurance.
The most important variable to watch out for is what exactly your policy will cover. A catastrophic event must be clearly defined in the policy.
Workers’ Compensation
Workers’ Compensation Insurance is legally required to conduct business in most states. Some industries are more dangerous than others, but workers’ comp will cover your employees no matter the danger levels.
There are a few stipulations, of course, to receiving the benefits of workers’ compensation. Employees must immediately be drug tested when injured, and some policies require that employees use specific medical providers. Be sure to fully understand the boundaries of coverage for your employees.
Professional Liability Insurance
Sometimes referred to as Errors and Omissions Insurance, Professional Liability Insurance is designed to protect your organization in the case of a lawsuit. If someone from your business gives faulty information, or information that turns bad, your organization can be held liable.
An error in judgment cannot always be avoided, so make sure you protect your investments with the right coverage policy. Your legal representation will thank you, and so will your employees.
