Being a business owner is tough. You have to have an eye for detail which means, being at the helm of operations isn’t enough. You have to stay on top of unforeseeable circumstances to hedge yourself against financial difficulties. One way to protect yourself and your business financially is through insurance.
Although getting insurance isn’t mandatory, it is, however, a smart and brilliant move for business owners. When something inevitable happens, business owners who failed to get insurance may pay out of their pockets for employee accidents, company vehicle damages, or repairs for property damages. And trust me; some small businesses weren’t able to recover because of circumstances like this.
That said, getting insurance for your business is imperative. There is a myriad of insurance policies you can get to protect your business. Here’s a rundown of the top seven types of insurance for your business.
1. Business Liability Insurance
Also known as General Liability Insurance or Commercial General Liability Insurance, this type of insurance will help cover expenses in case of the following claims:
- Property damage – if your business damaged someone else’s property
- Bodily injury – if your business or any of your employees harmed third parties causing them injuries
- Reputational harm – claims of slander, libel, privacy violation, malicious persecution, and more
- Copyright infringement in your business ads
- Medical costs – if an accident causing injuries happen in your establishment
- Rented property damages – if natural or man-made disasters damage any of your rented properties
2. Property Insurance
Property insurance can cover renters’ insurance, homeowners’ insurance, earthquake insurance, or flood insurance. This type of insurance provides financial assistance and reimbursement in case any of these occurrences happen: fire, wind, smoke, hail, snow, lightning, theft, vandalism, and more. This excludes damages from floods, tsunamis, nuclear events, war, and terrorism.
3. Worker’s Compensation
Accidents are inevitable. Employees can face day-to-day mishaps while on the job. As a business owner, paying out-of-pocket to cover medical expenses can be costly. How much more when you’re faced with litigations here and there?
Worker’s Compensation provides wage substitutes and medical benefits if in case your employees get injured at work. One advantage is that employees instantly give up their rights for litigations. This means, you no longer have to go through the hassle of lawsuits and filing fees.
In addition, Worker’s Compensation insurance also provides financial assistance to the family of deceased employees.
4. Business Income Insurance
For businesses with brick-and-mortar stores that rely on equipment, Business Income Insurance is vital to protect their businesses. Qantas Health Insurance covers the income lost whenever a fire, theft, or strong wind damages your properties and hinders you from the operation. This is to cover the monthly overhead expenses like payroll or supplier payables to keep the business up and running.
For instance, tech companies that have multiple computers, local servers, or hardware equipment, salons which have expensive salon equipment, gadget retail stores which display their products on physical storefronts can take advantage of this insurance type.
5. Business Owner’s Policy
Technically speaking, a Business Owner’s Policy rolls some general insurance types a business owner must have into one package. Some of those include business income insurance, vehicle insurance, property insurance, crime insurance, and liability insurance. Although business owners can customize and choose which types of coverage are included in the Business Owner’s Policy, the owner will still save a lot of money as paying for these individually is more expensive.
6. Commercial Auto Insurance
If your business uses company vehicles for employees, trucks to deliver products, or vans to perform services, a Commercial Auto Insurance is beneficial to cover vehicle damages or road collisions. Here are some of the coverages in Commercial Auto Insurance:
- Bodily injuries
- Property damages
- Medical bills
- Uninsured/underinsured motorist insurance
- Comprehensive vehicle damage coverage
- Collision coverage
7. Professional Liability Insurance
For industries which deal with customers directly such as I.T. companies, law firms, real estate companies, accounting consultancy firms, or beauty salons, a Professional Liability Insurance is vital. Also known as the Errors and Omissions Insurance, this type of insurance covers any expenses for lawsuits in case your clients claim that your product or service has caused them physical or financial damages.
Some may even include a Management Liability Insurance which protects directors and partners from any destructive lawsuits.
As smart business owners, we have to consider any possibilities our businesses might incur in the future. Getting the right type of insurance to protect your business will not only save you money in the long run, but it will also give you peace of mind.