Not too long ago, we discussed the types of insurance a small business owner should have. These insurance policies are designed to protect the wellbeing of the business as well as protect you – the business owner – from liabilities. While the basic coverages are enough to safeguard your position as a business owner, they are geared more towards managing business-related risks.
Unfortunately, many business owners see the insurance policies discussed in the previous article as more than enough. In many cases, business owners pick some policies that they find useful in the immediate future, and simply abandon insurance options that are not so crucial. Taking this approach isn’t what you want, since it only exposes you to more risks in the future.
There are also personal risks to mitigate. Once again, a misconception on the market causes many business owners to abandon insurance options that are actually more beneficial than they realise. Let’s now review the insurance policies that often get overlooked and how you can benefit from them.
Key Man Insurance
Key man insurance is basically a life insurance for an important figure in the business. As the name suggests, the purpose of this insurance policy is providing coverage for the important person as well as the business.
The life insurance is used to insure key figures without whom the business will not run. This includes you, the business owner, and other key employees that are crucial to the successful future of the business.
The insurance policy kicks in whenever you lose a key figure in the business. The insurance policy doesn’t only protect your business, but also the income generated by the business under normal operating conditions.
Personal Medical Insurance
As a business owner, there are a few ways you can secure health insurance for yourself. You can either register as a business owner and get the coverage offered by your business health insurance, or go the private route and sign up for a personal medical insurance.
Each option has its own advantages, but going the private route is usually how you secure better coverage and a more comprehensive protection for yourself. On top of that, you can use the private health insurance to provide additional coverage beyond the business health insurance.
Private medical insurance is also useful for protecting your family. Thanks to companies such as Applescott Insurance, finding the right medical insurance policy to use is now easier than ever.
Professional Liability Insurance
If your business offers services and not just products, a professional liability insurance is absolutely necessary. You’ll be amazed by just how many risks this type of insurance covers, especially when you consider the relatively small premium you have to pay in return.
In simple terms, professional liability insurance protects you and the business against dissatisfied clients. Whether a client is not happy because you miss a deadline, or they are simply not pleased by the quality of your work, you remain fully protected.
The insurance policy also covers clients’ complaints that are caused by accidents or loss of assets. Let’s say your computers get stolen and you lose all project-related data – professional liability insurance will act as an umbrella insurance while your business insurance covers the loss of assets itself.
Business Income Coverage
There are several insurance options available if you want to protect your business income. Remember that protecting business income also means protecting your personal income as a business owner, which is why this type of coverage is necessary for your wellbeing.
The way this coverage works is that it protects you against direct loss of income caused by events recognised in the insurance policy. Anything from a natural disaster to theft and hardware or machinery failure are covered by most business income insurance.
The moment your business stops generating income due to these causes, the insurance policy kicks in and provide you with the necessary coverage. You can the focus on getting the business running again while the insurance company provides you with sufficient income.
Last but certainly not least, you need to consider driver’s insurance as an addition to the more conventional vehicle insurance. The same companies that offer vehicle insurance usually offer driver’s insurance as an added feature.
Instead of insuring a vehicle specifically, you are insuring employees that drive vehicles as part of their work; yes, you can include yourself in the policy. When you have this type of coverage, you remain covered even when driving non-company cars, including rental cars and personal vehicles.
Driver’s insurance can also be used as an umbrella insurance in the event of an accident. Both the vehicle insurance and driver-specific insurance kick in, leaving you in a safer position than before.
From these details, it is easy to see how these often-neglected insurance options are crucial to your wellbeing as a business owner. Explore the options currently available and protect your life as a small business owner better.