Starting your own business is a large undertaking, and there are a million and one different variables to consider along the way. The best way to prepare for those variables is to invest in the right sort of insurance.
Many entrepreneurs make the mistake of not fully investing their time in researching the different types of business insurance. Boost your chances of success in the industry, and check out a brief overview of a few types of insurance you should consider purchasing.
Workers’ Compensation Insurance
Workers’ Compensation Insurance is one of the most important types of coverage you need as a business owner. It is also required by law in almost every state in the U.S. Workers’ Comp provides medical coverage for your employees (and for you) in the case of an on-the-job injury.
Workers’ Compensation Insurance will also make amends for lost wages due to an illness or injury caused or occuring in the workplace. If someone breaks their leg working at your facility, you are legally liable for their well-being. Don’t try to skip over Workers’ Comp Insurance.
Professional Liability Insurance
Professional Liability Insurance will protect your business against the possible “errors or omissions” that could occur. This sort of insurance will keep lawsuits and negligence claims at bay, and keep your organization running smoothly.
Accidents happen, and sometimes you cannot trust your employees. Professional Liability Insurance will hold the reigns, and build an invisible hedge of protection around your company.
Property Insurance is handy when things break due to uncontrollable situations. If kids plant graffiti all over the side of your building, or a fire causes your machines to malfunction, Property Insurance will cover the cost of repairs or replacement.
Make sure you understand the type of Property Insurance you purchase, as there is not just one. You may also purchase peril property insurance that covers specific tragic happenings like flooding and other natural disasters
Business Interruption Insurance
When a massive disaster strikes an area, the businesses in that area are unable to conduct business. There’s an insurance for that, too. An organization can suffer catastrophic financial losses when a natural disaster comes through town.
Business Interruption Insurance is purposed for recovering the money lost due to the “interruption” in business. Make sure to be clear with your insurer to fully understand what exactly is covered by your policy.
Product Liability Insurance
If you sell your products on a general market, then you need Product Liability Insurance. This sort of insurance will protect your business against a faulty product. Even if your workers do everything right, there is always a chance of your product malfunctioning in some manner.