In any business environment and enterprise, calamity is unavoidable and when it strikes it can leave you as business owner with nothing to hang on to. Smart business people have learned and understand the need for insurance coverage for their businesses, employees, and even assets.
Any kind of risk that is conceivable can be insured against, and this will give you some peace knowing that unavoidable calamities are well taken care of if they exist. The type of insurance cover you choose will depend on the insurance company and the type of insurance you want to take or has been advised by your insurer. For small businesses in general, insurance coverage will depend on their profession and trade.
Choosing the right insurance
The business policy that you take will most likely depend on the type of business you are in. To come up with a sound cover, you should go through various business insurance quotes and seek to understand the different clauses written. Insurance coverage should be done as soon as you open up your business enterprise because calamities are unpredictable. Don’t put this aside because it feels like a daunting, disagreeable task. Be sure to have it at the top of your list as you are starting out on this new venture.
The different types of insurance
There are a variety of insurance policies to cover your small business in the case of calamity, below are the most common types that you should be aware of:
- General/public liability insurance: A person can undertake the general liability insurance to take precaution against predicaments like injuries, accidents, and negligence claims. It covers any damage or accident that may happen to any person while on your premises whether they work for you or not.
- Product liability insurance: This insurance coverage is suitable for manufacturing organizations and is also appropriate for firms that are concerned with wholesaling, distribution, and retailing of goods so as to protect them against risks. A product liability insurance coverage is ideal for such businesses as it protects against any harm or loss from any defective product especially if it may cause harm to an individual consumer. A business’s premiums depend on the net worth of the firm.
- Professional liability insurance: This insurance coverage is for business enterprises that offer services to individuals and wish to insure that they are able to protect themselves against any negligence towards their clients when delivering their services, malpractices, and other errors that may occur during one’s call or duty. It is at times a major requirement in some professions. Should a client suffer due to advice given by you or on your behalf, he can seek to be compensated resulting in huge losses due to the costs of legal proceedings. This cover will stand in for such.
- Commercial property insurance: It comes in two phases: all-risk policies and peril risk policies. For a small- and average-sized business organization, all-risk policies are seen and considered ideal as they cover a range of accidents and incidents that are wide. On the other hand, peril risk policies cover specific policies like floods, fire, and crime. They cover all related losses that may occur to a company’s assets or properties accruing from the wind, floods, theft and vandalism, fire or other calamities. It can also include business interruption, lost income, and money, etc.
- Employers’ liability insurance: This coverage seeks to stand for any employee who may get injured or suffers in one way or another while still in the workplace or while still working even outside the normal place of work. This coverage is in many cases a law requirement to any firm that has employed either one or more people.