Running a business can be quite a commitment, as you are exposing yourself to a variety of financial risks. However, purchasing the right combination of insurance coverage can help guard against sudden financial costs and lawsuits. Understanding some of the most important types of business insurance that you should hold and what exactly they protect you from can help you avoid sudden financial troubles down the road.
Property insurance is the largest and widest type of business insurance policy available on the market, and many different types of policies exist. Generally, property insurance is designed to protect your place of business, whether it be an office, warehouse, or storefront, as well as any equipment, inventory, and other things related to the normal conduct of business.
Different levels of coverage are available, which are sometimes included under the same policy or made out of several different policies bundled together. Some of the most common types of coverage include natural disasters, like hurricane and earthquake damage, as well as insurance from things like plumbing leaks, power surges, other mechanical failures, theft and robbery (including by employees), and so on.
Talk to your insurance provider to see what policies are available to you and determine which combination of coverage is best-suited to protecting your business depending on your line of work and geographical location. Keep in mind that separate auto insurance policies are necessary and usually are not included under the umbrella of property.
Workers' Compensation Insurance
As the name would suggest, workers' compensation insurance is designed to protect your business from costs associated with any sort of injury or harm—including long-term disability and illnesses—that may affect one of your employees. In most areas, it is legally required for you to carry workers' compensation insurance if you employee people besides yourself, but it would be a mistake to not carry it even in the event that you are not legally obligated to, as long-term and serious injury claims against your business can be quite significant.
In contrast to workers' compensation insurance, liability coverage will protect your business in the event that a customer gets injured on your property. This includes something as simple as slipping on the curb outside or becoming hurt or injured because of a product that you have sold them. This is particularly important for businesses that have retail locations, but is less important for office buildings that offer services that do not have to interact directly with clients.
For more information, reach out to insurance companies like Insurance Unlimited.
You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.