When running a business, you are routinely engaged in various responsibilities like product manufacturing, supply procurement, customer outreach, and payroll management, among others. Despite juggling these diverse tasks, it is crucial not to neglect business insurance. It acts as a safety net for your assets in case of an unprecedented issue or mishap.
You may want to explore several different types of business insurance, including:
HOME-BASED BUSINESS INSURANCE
Working from home may lead you to believe that your homeowner’s insurance also shields your business, but this is often not the case. It is typically necessary to add a rider to your existing policy for home-based business coverage. However, this is just the beginning. You may want to consider these additional types of business insurance:
PROFESSIONAL LIABILITY INSURANCE (ALSO REFERRED TO AS ERRORS AND OMISSIONS INSURANCE)
This insurance safeguards you from client harm resulting from mistakes, negligence, or errors during service delivery. For example, physicians also refer to this as malpractice insurance.
PRODUCT LIABILITY INSURANCE
If your business involves creating a tangible product, this insurance might be necessary. It offers protection if your product has faults leading to physical injury or death. For instance, a business creating baby products would require more product liability insurance than one that manufactures blankets. The product’s risk level dictates your insurance needs directly.
COMMERCIAL PROPERTY INSURANCE
If you maintain a separate workplace for your business along with your own equipment, commercial property insurance is likely needed. It comes in two forms:
1. All-risk policies: Providing coverage against a range of potential problems like fire, theft, vandalism, and more.
2. Peril-specific policies: Protecting you from events specific to your business’s location, such as flood insurance for those situated near coastlines.
Commercial property insurance guards against physical damages and lost income, including loss of business capital, computers, and more.
GENERAL LIABILITY INSURANCE
Should incidents of accidents, injuries, or negligence claims occur, general liability insurance defends your business. It covers costs resulting from judgments against you or medical liabilities.
Though purchasing these multiple insurance policies might seem pricey, they provide comprehensive protection to your business. The larger your business grows, the higher its value, the more you have at stake, making having the right insurance coverage increasingly vital.
Ultimately, investment in insurance policies proves less expensive than the alternative—confronting a lawsuit or liability judgment without any cover. Therefore, don’t procrastinate in arranging appropriate insurance coverage for your business.
