Many new business owners feel baffled when they try to decide on an insurance plan. In my opinion, the biggest problem is a lack of knowledge on the topic. There are many different types of insurance coverage for businesses, and everything starts with research. Choosing a service like ours is certainly a step in the right direction, but it is still important to understand what the difference policies offer.
General Liability Insurance
The most basic insurance. If nothing else, you must have general liability insurance. This type of insurance protects your business against lawsuits. Even if something happens due to your negligence, the insurance company covers you, including your legal fees. No business is immune to lawsuits, which means this type of insurance – as the basic minimum – is extremely crucial.
If a company manufactures, retails or distributes a product, they are responsible for its safety. If a defective product results in injury or worse, and the company in question does not have product insurance, they are liable for the damages. If, however, they are protected by product liability insurance, the insurance covers these liabilities. Naturally, the cost of the insurance fluctuates significantly depending on what kind of business we are talking about. For example, a pharmaceutical company will face significantly higher costs than a shoe manufacturer.
Professional Liability Insurance
This type of insurance usually covers companies that offer professional services to their clients. The insurance covers the owner of the firm, and as long as they have this type of insurance, most negligence cases are fully covered. In some countries, doctors must have professional liability insurance if they want to practice.
This insurance covers the property, and usually involves businesses with a physical site or factory. The insurance covers a wide variety of potential outcomes, including theft, personal injury, fire and even graffiti or another form of vandalism.
Any business with a sizeable workforce should have this insurance. If anything happens to a worker, the compensation policy takes care of any liabilities, unless special circumstances apply.
If the company uses vehicles for its operation, commercial auto insurance is almost mandatory. These plans cover personal injury and any car damage.
Umbrella policies are “all in one” type of insurance deals that include everything that other policies do not cover. These are usually cheap, but likely only available as part of an insurance package. Maxing out other policies could also be necessary
The Importance of Insurance
Some states require you to have certain business insurances. Property insurance is one of the most common types, but it does not cover profit losses, not even if you work from your home. Anything bad happens; you can look at significant downtime, which can be extremely harmful to a business. Liability waivers cannot protect your interests, but expertise can. Buying all of your insurances at one company is also a great idea, and we can make it happen for you.