As a leader or entrepreneur of a company, not only do you have to carry out organizational tasks to keep the business running, but you also must think about protecting the company.
One of the most important factors for company protection is insurance for your business. Business insurance is meant to protect you from the unexpected costs of running a business, and is necessary when it comes to accidents, lawsuits, and natural disasters.
Please keep reading to learn more.
What Type of Business Insurance Do You Need?
Getting started may be the most difficult part of securing the right business insurance. The protection that you receive after choosing a business structure typically only protects your personal property rather than your business.
That protection is usually limited.
Business insurance does the job of making sure both your personal assets and business assets remain completely protected from surprise attacks. If a hurricane hits your business right as you’re being sued over an accident that happened, business insurance has got you covered.
Depending on your business, you may have to buy a certain type of business insurance. The government requires businesses with employees to have unemployment, workers’ compensation, disability insurance and possibly critical illness insurance. Requirements vary state-by-state.
Common Types of Business Insurance
After buying the insurance that is required by law, you can start looking for an insurance policy that covers all other business risks. Keep in mind that it is common to insure against things that you most likely would not be able to pay for out of your own pocket
Consulting insurance agents may be helpful as well in your search for the best insurance for your business.
General Liability Insurance
This type of insurance product protects you from financial loss that is a result of medical expenses, bodily injury, defending lawsuits, slander, property damage, libel, and settlement bonds or judgements.
Product Liability Insurance
Product liability insurance has got your back when it comes to financial loss due to a defective product that causes bodily harm or injury.
Professional Liability Insurance
This type of insurance protects against financial loss due to errors, malpractice, and negligence.
Commercial Property Insurance
Commercial property insurance specializes in protecting your business against loss and damage of property that is caused by a variety of events. These events include fires, wind and hailstorms, smoke, vandalism, and civil disobedience.
Home-Based Business Insurance
Home-based business insurance is coverage that is added to homeowner’s insurance. It offers protection for business equipment as well as liability coverage for possible third-party injuries
Business Owner’s Policy
This is an insurance package that combines all the usual coverage options into a bundle. It simplifies the process of buying insurance and saves you money as well!
Steps to Buying Business Insurance
When buying insurance, you must follow four crucial steps to ensure that you are doing the best for your business. First, you should assess your risks.
Assessing risks involves considering what kind of accidents, lawsuits, or natural disasters could potentially damage your business.
Next, find a reputable insurance agent. By doing this, you will be getting help finding policies that match what your business needs. Try and find one who is just as interested in meeting your needs as they are in meeting their own.
After that, research a few different options. Benefits and prices vary across the board. Because of the variety, comparing rates, terms, and benefits from different agents can give you the best idea.
You should re-assess your insurance choice every year. Liabilities increase, operations expand, and you must stay on top of it all.
Business insurance at first glance can sound complicated as it is basically meant to protect multiple people at once. However, following the steps above, your business will be easily insured, taking a lot of responsibilities off management’s shoulders.