5 types of business insurance and why do you need them?
While planning for a business, you need to make a solid investment strategy regarding marketing, promotional and developing new products & services. All these play an imperative role in the development and growth of your business. But one thing that most entrepreneurs often ignore in the initial planning is the right business insurance. Business insurance offers imperative protections against losses from unforeseen incidents, mistakes, employee misconduct, lawsuits and other liabilities. By adopting the right business insurance, you can protect your employees, products, assets, and investments.
Companies like Surewise offer business insurance including aviation insurance, construction insurance, cybersecurity insurance, drone insurance, equine insurance, corporate travel insurance, and many more.
Here, we are going to mention some common types of business insurances and why you need to employ them to run your business smoothly and efficiently.
Worker’s compensation insurance
Once you have started hiring employees for your organization, you must incorporate the worker’s compensation insurance policy into your business insurance plan. This type of insurance policy will cover medical treatment, disability and death benefits of an employee if he gets injured or dies because of the nature of his work. But certain factors are required (what type of business you are running, how many employees you have, etc.) if you want to apply for this insurance policy. You must consult with the local governing body to know what are the requirements for this policy. Even in “safe” environments like corporate and other in-house offices, employees can still be injured from slips and other accidents. If you have this policy, then you can easily protect your employees and can offer a secure working environment.
Professional liability insurance
Professional liability insurance is another important business insurance and is known as errors and omissions (E&O) insurance. This type of insurance covers loss or damage if you make a mistake or error in providing services that can lead to injury, property damage, or some other type of loss for your clients and customers. Now, suppose if you are fixing an air conditioning machine and a piece of equipment is broken off suddenly, then this insurance will help you to recover your loss. This insurance also covers if inappropriate advice is given during a consultation that led to a huge loss for the customer. But there is no one standard policy for this type of insurance. As different industries have a different set of concerns, everyone needs a customized policy to address their problems.
Property insurance policy
Whether a business owns or leases its space, property insurance is quintessential for every business owner. This type of insurance covers equipment, signage, inventory and furniture and protects them from unforeseen events like fire, storm or theft. But, mass-destruction events like floods and earthquakes are not covered by this type of insurance. If your business is in an area that is susceptible to these issues, then you must consult with your insurer for a separate policy. This insurance also prevents lawsuits if your activities cause damage to another person’s property.
Product liability insurance
If your company manufactures products, then you must opt for product liability insurance. Every business takes effective measures to make sure its products are safe. But sometimes, they may face lawsuits due to damages caused by one of its products. In this scenario, a product liability insurance works the best for the businesses. But the policy covers a specific type of product.
General liability insurance
General liability insurance is typically designed to protect you and your company from multifarious claims like accidents, injuries, or claims of negligence and many more. This type of insurance will help you to pay for things like property damage, medical expenses, libel, slander, legal costs, and defective products.
These are the top 5 business insurances that you need to thrive and flourish the growth of your business.
Surewise is a premium company that welcomes customers with various business insurance policies. The company also offers other insurances like builders’ insurance, construction insurance, cybersecurity insurance and many more. But before selecting a business insurance policy, you must carefully read what are the things covered by the policy.
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