Running a successful business is never easy. As the owner, your primary goal is to ensure you make sustainable profits without getting exposed to unnecessary risks. You also want to protect the reputation of the brand and ensure both your employees and clients are happy. In addition to that, you want to comply with all the laws touching on your business as well as pay taxes in a timely manner. That said, business insurance is a basic necessity in business as it helps protect the business and its owner from all the risks that may arise.
It is important to note that there are different types of business insurance policies that every business owner needs to purchase. While this will cost a significant amount of money, it might help save your business from total collapse. You should compare the cost of each provider before making a decision on who to go with. The following is a list of the main types of insurance you should consider for your business:
Types of Business Insurance
i) General Liability Insurance
While you might have put in place every possible measure to ensure both your staff and customers/clients are safe, there is always the risk of injury within your business premise. Clients can also be injured by the products or services you offer. Since the aggrieved party can file an injury lawsuit that might cripple your business, you need to have general liability insurance to cover medical expenses incurred and legal fees arising from physical injuries and other liabilities your business is legally liable for. The policy also covers property damage, defamation and slander among other things. This is one policy your business absolutely needs as it can prevent it from total collapse.
ii) Workers Compensation
Workers are always exposed to different levels of risks. Some businesses are more risky than others, but the risk is always there. That is why some states have made workers compensation mandatory. Some states have workers compensation alternatives, which you can consider. Workers Comp, as it is normally referred to, protects employers from lawsuits in exchange for guaranteed medical and wage replacement benefits to injured employees.
iii) Professional Liability
If you are a licensed practicing professional, you need to get professional liability insurance. This policy covers errors and omissions that may bring rise to liabilities. The policy will protect your business from claims of incomplete services, failed services or negligence.
iv) Commercial Property Insurance
The business premise, furniture and fittings, office stationery and appliances, inventory and other tangible assets in your business are always at risk. There is fire hazard, storm damage and other risks facing your business. If you have anything of value in your business premise, you must have commercial property insurance to protect them from every possible risk.
v) Unemployment Insurance
When you want to look after your employees, you should consider buying unemployment insurance to ensure your employees are well-taken care of in case of job loss. If you are looking to hire the top talent, unemployment insurance will give you an edge over the competition.
These are the top 5 business insurance policies that every business needs to have to ensure the business is totally covered from all the risks that may arise in the future. It is important to note that there are thousands of insurance companies that offer these insurance policies. It is always cheaper to get a bundled policy from a single insurer than getting multiple policies from different insurers.
To ensure you get the best deal on the market, consider working with an independent insurance broker. These professionals have access to important information about the industry, which makes them highly effective in analyzing policies and picking the best policies for their clients. Therefore, you should consider working with an experienced, trusted and reliable insurance broker.
