5 types of business insurance that are a must have
From the first day you start a business as an entrepreneur, you expose yourself to a number of risks which makes it quite crucial to have in place the right business insurance. A catastrophic event or a single lawsuit may obliterate your business even before it has the opportunity to grow. Luckily, businesses can sign up for a number of business insurance types to steer clear of these risks. This article highlights five types of insurance that a business should have in place immediately.
Product liability insurance
If your company produces goods for sale to the masses, you cannot afford not to take up product liability insurance. Even if you normally observe stringent measures to make sure your goods are safe, there's a possibility you might find yourself in a claim by a customer owing to damages instigated by one of your products. In such a case, product liability insurance will protect your business.
Professional liability insurance
Also referred to as errors and omissions insurance, professional liability insurance protects your company against neglect claims owing to harm resulting from errors or failure to act as expected. Because every business industry has its own unique concerns, entrepreneurs can go for a customized professional liability insurance which fits their particular business.
Property insurance is a necessity whether a business leases or owns its space. Basically, this insurance protects all business equipment, inventory, signage and furniture in the unfortunate event of a burglary, fire or storm.
Workers' compensation insurance
As long you have an employee working in your company, you need to take up workers' compensation insurance. This policy covers medical treatment, physical disability as well as death benefits in case an employee sustains a work-related injury or dies in the course of work or because of work-related illness. When an employee files for compensation following his or her work-related injury, this policy may come in handy in terms of settling the claim.
If your business has a fleet of cars meant for business operations, those cars should be completely insured to protect your business against responsibility in the event of an accident. Taking up comprehensive insurance for your business vehicles is highly advised. However, if your employees are using their private vehicles for business, then their own personal coverage will protect them in case of a mishap.
By taking up the right business insurance, entrepreneurs can steer clear of significant financial losses resulting from lawsuits or tragic events. Consult with your insurer on the best types of insurance for your particular business.