As an entrepreneur or business owner, you open yourself to various risks every day. The business faces a few business risks even before the first employee is hired, so having the right insurance policies is critical. In any business, the smallest lawsuit is enough to put it out of business overnight. A smart business owner will take full advantage of insurance policies offered to companies to keep them protected from any unforeseen circumstance. For more info, here are a few insurance policies a business may need as extra benefits.
Professional Liability Insurance
Known as the errors and omissions(E&O) insurance, professional liability insurance is there to cover a business in the event of negligence claims that have occurred due to harm resulting from errors to perform. Businesses are not the same in many ways; therefore, professional liability insurance is no one-size-fits-all. This insurance has customized policies written for the business, with its concerns to be addressed.
As a business, whether you are leasing or own a property space, you will need property insurance. In the unfortunate event of theft, storm, or fire, this insurance policy covers furniture, inventory, signage, and equipment. However, under general conditions, the cover does not include natural destruction events like earthquakes and floods. Should your business location have regular mass-destructions, it is best to negotiate a separate policy specific to these conditions.
Workers’ Compensation Insurance
A business insurance plan should be amplified with a workers’ compensation policy from the very first employee to be hired. In the event that an employee is injured or dies while working in the company, the workers’ compensation policy covers any medical covers, disability, and death benefits. Regardless of what tasks the employee was doing, and seemingly low-risk, all it takes is a slip and fall to cause an injury or a costly medical condition like carpal tunnel syndrome.
Many entrepreneurs do not have the capital to own or rent a business; thus, they start and run their business from home. Unfortunately, home-based businesses are not covered under homeowner’s policy in the way commercial property insurance does. To protect against any problems that may occur, consult your insurer about additional insurance to cover your inventory and equipment should you start operating your business out of your home.
Product Liability Insurance.
Product liability insurance is essential for any business that manufactures and sells products in the general market. Every company goes the extra mile to ensure the safety and security of its products; however, any business can find itself in a lawsuit situation due to damage caused by the products it produces. Depending on the type of products, businesses can tailor their product liability insurance cover to protect the business in such cases best.
Should your business have vehicles used for business operations, your cars need to be protected against any unexpected accidents and liabilities. Comprehensive insurance covers the vehicle, so to ensure third-party injuries, vehicle insurance should cover it. On the other hand, should employees use their vehicles, their personal insurance covers them should they be in an accident.