Importance of having business insurance
Business insurance is a must for every type of business. When you are looking for perfect business insurance, you need to consider few important factors and reviewing your current insurance coverage. Business insurance will vary from one business to another. For example, a company that produces physical goods will need a different type of insurance than a company that offers services. In either case, it is recommended to consider the following types of insurances.
Workers’ Compensation Insurance – For employees
As per the state laws, it is a must for every business. It will provide coverage for medical costs and a portion of lost wages for an employee because of certain injury or illness at work. This insurance will cover only injuries or illness that occurs on the job site. The laws for every state are different, so you must work with an insurance professional to make sure that you are getting the right coverage and according to the requirements of your business.
General liability insurance
This insurance is designed to protect your business from a variety of claims including accidents, injuries or claims of negligence. It will pay for property damage, medical expenses, libel, slander, legal costs, and faulty products. No one wants to get sued, but it’s still a possibility. Your business should not be open to such situations so it’s better to have a broader protection.
Professional liability insurance – ‘Errors and omissions’ coverage.
Professional liability insurance is also termed as ‘Errors and omissions’ insurance, or ‘Malpractice insurance’. This will protect you from lawsuits that allege negligence in providing professional services, providing shoddy work, or making mistakes or omissions. If you have a service based business, then this is the right insurance.
It is important to carry adequate commercial property insurance. Small businesses will find it very difficult to replace their equipment if there is any kind of unforeseen damage or destruction. Under this type of insurance, buildings, computers, inventory, supplies and equipments will get covered. This insurance is of two types. ‘All-risk’ policies will cover just almost everything. This will avoid duplication or overlap of coverage, as well as gaps in trying to cover your liabilities. “Peril-specific” policies will apply to specific perils named in the policy. They are usually needed when there is a high risk in a particular area.
Life insurance – protection and benefit.
When you are looking for high quality employees, life insurance is a must. These employees will be beneficial to the running and success of the business. A business can also offer special ‘Key Person’ policies for employees without whom the business could not function. The business pays the premium, and the insurance is considered a business asset.
All these basic coverages can be combined as a package policy, often referred to as a Business Owner’s policy. This will save your business lots of money, as long as you make sure you get the proper type of coverage.
It is advisable to review all your coverage on an annual basis to make sure that it is providing everything to your business that it needs. Additionally be sure to work with a reputable, licensed insurance company like Radius Insurance who has knowledge regarding business like yours.