Business 101: 4 major types of business insurance to know about
Stepping into the world of business insurance can be quite tedious since you’re faced with insurance terminology, new laws, regulations, and so on and so forth. This is why people get an insurance broker or an insurance advisor to help them out and get the best policy that suits them.
But you don’t need either one to understand the 4 major types of business insurance. Knowing this as a starting businessman is crucial since your business is an asset and of course, no asset should be left uninsured. This is to help you run your business smoothly and securely, without the worry of extra expenses that can ultimately cause major setbacks.
So whether your business is small, medium or big it’s best you get well acquainted with the 4 major kinds of business insurance! So to know all the major types and their ‘hows, what and whys’, check out the list down below:
1. Property insurance
If you own a physical business or any property related to your business like storage, it’s best to get it insured. Property is one of the biggest forms of assets and holds an important role in any business. And when it gets damaged, the setback you’re going to face can potentially hinder progress and force you to close down.
Calamities and disasters are no stranger and can happen anything. Getting this insurance policy will safeguard your property from fires, hurricanes, typhoons, floods and many more. This is why property insurance is one of the most sought insurances around.
But bear in mind, that there are tons of property insurance policies out there so you’ll have a handful of choices. To get the best deal that suits your location, the number of assets and the nature of your business, consider hiring an insurance advisor.
2. Vehicle insurance
Another essential asset to consider is your company’s vehicles. Due to the increase in vehicle traffic, vehicle accidents are now more likely to occur plus you’re also left with natural calamities.
And while you can check if your personal insurance can cover any damages that happened on the job, it’s also good to consider getting one separately. This is to ensure any damages to your company vehicle will be covered.
So when picking out an insurance policy for your company vehicle, consider the vehicle’s model, replacement policy and so on. To get the perfect policy, consider working with an insurance broker and get the best deal suited for your vehicles.
3. Liability insurance
Liability insurance is a business’s best friend. This covers damages that happened in your facility and damages that occurred during service. There are two kinds you should know about such as general and professional liability.
General liability is made to protect your company from lawsuits. Lawsuits for incidents that occurred to non-personnel in your facility. An example would be: A child that slipped on a wet floor while grocery shopping with her mom. Having general liability insurance will keep you covered if the child’s mother chooses to press charges.
Professional liability, on the other hand, will protect you from lawsuits of any negligence done by the company. May it be damages caused by the company during service, unfit products and so on.
4. Employee compensation insurance
Last but certainly not the least is employee compensation insurance. This insurance policy is made to safeguard your staff’s safety in the workplace. This covers your employee’s medical and hospital bills or even when they take paid leaves. Although not a lot of businesses have this coverage, it’s still a good policy to consider getting.
And a great way to show appreciation to your employees. The only way they lose the right to avail themselves of the coverage is when they violate company rules during the incident. Plus this insurance policy will also protect you from lawsuits filed against you by your own employees. So for the safety of your staff as well as your business, consider getting this insurance policy.
Now that you know all the 4 major types you are now ready to run a safe, secured and worry-free business! And remember, before getting any sort of coverage, make sure it lines up with your needs. Getting all fourth will close all doors for setbacks, extra expenses and worry.