Worried about what might happen in the future? Business insurance acts as safety nets for any company. Every industry can have a wide range of liabilities.
A dental practice may not need the same types of insurance as a shoe manufacturer or a digital marketing agency.
However, there are a few essential types of insurance that all companies will need, as mandated by law or otherwise.
Worker’s Compensation
This type of insurance covers medical treatments, death benefits, disabilities, injuries, and other potential work-related liabilities.
It’s something every business should have after hiring its first employee. That said, it may not be as necessary if you don’t have any full-time employees.
Professional Liability
Not just service companies, practically every business needs protection against negligence claims. Professional liability insurance can protect against claims of harm or damage as a result of non-performance or mistakes.
As you may expect, your industry will have its own set of standards, concerns, and situations covered under this type of insurance.
Property Insurance
A property insurance policy can protect against a wide range of physical damage. It’s something that businesses need whether they lease or own the property.
Through property insurance, a company can also protect its physical assets like inventory and equipment.
Furthermore, it can protect a business from environmental damage such as floods, fires, and malicious offences such as theft.
Product Liability
Service-based businesses may not need this as much. However, companies that sell products can’t afford to do without product liability insurance.
This can help protect the business from damages caused by the use of its products. It’s a flexible type of insurance that can cover a specific product or a range or category of products.
Business Interruption
One of the most overlooked and undervalued insurance policies. It can cover a range of environmental or even catastrophic events that lead to a halt in operations.
Simply put, a business interruption insurance policy can help keep a business afloat when disaster strikes.
Having this insurance could compensate for lost income when you need it most. However, most companies covered by this insurance are those that have a physical location, like retail stores, for example.
Data Breach
Data breach insurance policies are rather new. But they can be invaluable for businesses that work with vast amounts of sensitive information.
Storing any non-public client and employee data makes a company liable for its security. The insurance could provide protection in the event of a hack or physical data breach occurs.
Consider Bundle Insurance Packages
Insurance can add up, especially when a business needs coverage across multiple areas.
Therefore, some business owners choose bundle packages to save money.
For example, a business owner’s policy or BOP offers a lot of what a company might need:
Vehicle insurance
Property insurance
Crime insurance
Business interruption insurance
Such a package may not cover everything, but it covers most and it’s cheaper than getting each policy individually.
Every business has Some Risk
No company has zero operating risk. For small companies, one lawsuit can be enough to call it a day.
In this regard, having the right insurance types can be vital in ensuring your success.
