When it comes to business, it’s always smart to ensure that you cover all grounds when it comes to protecting it. Protection comes in many shapes and forms, but only two stand out. There is a way of preventing mishaps, and a way to act when they happen. Naturally, your business will take precautions in hopes of averting injuries, but inevitably, something can go wrong. For this reason, acquiring insurance for your business is crucial. However, there are several types of insurance, and you may be unsure as to which type best suits your needs. With that said, here are the insurance plans you will need in order to protect your business.
Types of Insurance
Businesses come in many sizes, and managing them can prove to be difficult. A business has many aspects to it; some concern the workforce, while others relate to the company’s assets. Providing your business with all possible contingencies will gain you protection when you are dealing with these aspects, which will revert the losses and provide you with financial compensation. Here are the types of insurance that will protect your business.
- General Liability Insurance
General liability insurance is key to operating safely, especially if your product is accused of causing bodily injury to a third party. They also protect a business from accusations of causing property damage. The reason this type of insurance is ‘General’ is because the protection extends from the summit, all the way down. This is of utmost importance especially for businesses in the service industry like event planners, catering services, etc. The insurance advisors over at netsurance.ca/insurance/event-insurance/ urge caution against property damage and bodily injury claims, since some customers can dishonestly accuse your product or service. General liability will cover defense and damages, protecting the employees and the business product from defamation, which should put this policy at the forefront of your immediate needs.
- Property Insurance
Since your business will likely be dealing with a myriad of people, your property is constantly at the risk of being damaged, either deliberately or unintentionally. Property insurance provides coverage for your building as well as the business’s equipment and inventory. Ideally, it is best to acquire a policy that protects your business against fires, theft, and vandalism. Property Insurance works best with a Loss of Earning insurance plan, since property damage affects the business’s ability to properly function, thus costing the business its earnings.
- Commercial Auto Insurance
Any business will have at least a few vehicles to its name. They will carry products, equipment, and employees. In order to protect the company’s vehicles from damages and collisions, you will need to subscribe to this policy. This becomes especially important if you are a delivery business, or if many of your operations rely on transportation. However, sometimes, your employees will drive their own vehicles. For this reason, it is best to fasten a Non-owned Auto Liability to your Commercial Auto Insurance for further protection.
- Business Owner’s Policy
No one is as exposed to risk as a business owner is. The Business Owner’s Policy packs a number of policies together that give all the coverage a business owner will need. These usually include business interruption insurance, coverage for vehicles and properties, crime insurance, and liability insurance. A Business Owner’s Policy will come at a lesser price, as you will not have to acquire these different policies separately.
- Worker’s Compensation
State regulations necessitate having this type of policy if you own a business with employees. This provides insurance to employees who get injured on the job. By affording your employees the privileges of this insurance plan, which are medical benefits and wage replacement, your employee will give up their rights to sue you. This removes the legal implications of dealing with a lawsuit and dealing with the penalties of not having Workers Compensation.
- Professional Liability Insurance
A Professional Liability Insurance will cover damages and defense for any failures to professionally deliver your services. Although they are comparable to General Liability Insurance, both types are not interchangeable. It is important to understand the differences between them, but it is more important to secure this type of contingency. Professional Liability Insurance plans are applicable for professional institutions, such as law firms, real estate agencies, insurance agencies, and hair salons, to name a few.
Acquiring the right policies for your business will guarantee protection against the technical failures and looming damages of your operations. Together, these insurance policies will remove liability from the business and will have you deal with less hassle. Although initially, you will be paying a lot, the service will end up saving you more money, and you will be thankful for it. These are the essential insurance policies every business needs.