Whether you’ve just started or have been running your business for years, you probably know the importance of having insurance. Your business insurance helps protect your employees, business property, inventory, and clients. Running a business is a risk-taking endeavor that requires financial preparedness. The last thing you want is to wake up one day and find a fire has destroyed your entire business. Insurance providers like Insurance Solutions of America helps you keep your business running in case of unfortunate events. Here are some business policies you should buy to protect your business.
1. General Liability Insurance
As a business owner, you need general liability insurance to protect you from legal actions taken by your clients or guests who get injured while at your business. This coverage can pay for legal fees if someone sues you for property damage, libel, slander, and other legal actions related to your business.
2. Commercial Property Insurance
Commercial property insurance covers everything related to business property loss or damage due to various events like fire, smoke, hail storms, wind, or vandalism. The coverage can replace or repair equipment or tools that are damaged or stolen. It’s critical to enquire whether this coverage pays for damage caused by floods or earthquakes as you will be forced to buy the policy separately.
3. Professional Liability Insurance
Professional liability insurance is also known as errors and omissions coverage. If you run a business that provides specific services such as construction or plumbing services, you can be sued for errors you make in your service delivery. For instance, if someone is injured in a building that you’re working on, they can sue you for injuries. The policy can pay for medical bills if it’s confirmed that the injury happened due to an error on your side.
4. Workers Compensation Insurance
Businesses with employees are required by law to carry workers’ compensation to cover their employees in case they are injured while working. You can check your state requirements to know how many employees you need to have to purchase worker’s insurance, as some states require you to have more than five employees. Workers’ compensation helps pay for medical bills, lost income, burial expenses, and disability benefits if an employee dies or gets disabled from a work-related injury.
5. Commercial Auto Insurance
All your business vehicles should be covered by commercial auto insurance. Remember your regular auto insurance does not reimburse you for damage or injuries related to commercial activities. The coverage can protect you or your employees if you cause property damage or injuries to another party.
6. Business Interruption Insurance
If a disaster or catastrophic event interrupts your business, this coverage can help pay for lost income due to the halted operations. This type of insurance best applies to companies requiring a physical location.
7. Product Liability Insurance
If you manufacture and sell products to the general market, you need product liability to protect you against lawsuits from customers complaining about the products. For instance, if you delivered goods that caused damage, illness, or injury to a consumer, you can be sued for the injuries. This coverage can help cover all the legal costs.