The Specific Types of Insurance You Need to Protect Your Business

While an entrepreneur starts a business, he gets exposed to certain risks. Business is at risk, even before the first employee is hired, making it important to have the right insurance in place. An uncertain event such as a catastrophic event or a lawsuit can wipe out a small business before it even has a chance to get off the ground.

Luckily, to protect you against such dangers, your business may get a wide range of insurance to get away from such hazards.

Here you’ll look at some insurance types that a business must have in place:

Professional Liability Insurance:

Professional liability insurance protects a business against negligence claims due to harm that maybe the reason for some failure or results from mistakes. There is no one-size-fits-all policy for professional liability insurance (also known as errors and omissions (E&O) insurance). Each Insurance company London has its own set of concerns that are written in a customized policy for business.

Property Insurance:

Property insurance is a must, whether a business owns or leases its space. This insurance covers inventory, furniture, signage, and equipment in the event of a storm, fire, or theft. However, under standard property insurance policies generally, don’t cover mass-destruction events like floods and earthquakes. Make sure to check with your insurer to price a separate policy, if your area is prone to these issues.

Workers’ Compensation Insurance:

When the first employee gets hired, workers’ compensation insurance must be added to a business’s insurance policy. This will cover medical treatment, death benefits and disability in an occurrence an employee gets injured or dies as a result of his work with that business. Even if the employees are performing in an area of low-risk, medical conditions such as carpal tunnel syndrome or slip-and-fall injuries could result in a pricey claim.

Home-Based Businesses:

Many professionals start their small businesses mostly at home. However, homeowner’s policies do not cover home-based businesses the way commercial property insurance does. Ask your insurer for additional insurance, if you’re operating your business out of your home to cover your equipment and inventory in the event of a problem.

Product Liability Insurance:

Product liability insurance is a must when your business manufactures products for sale on the general market. Even a business that takes every possible measure to keep its products safe can find itself named in the lawsuit because of damages caused by one of its products. This type of insurance works to protect a business in a case, with coverage available to be tailored specifically to a specific type of product.