Being a business owner can be stressful. You have to be good at multitasking, time management, people management and budgeting costs. You also need to expect the unexpected and always have a rainy day fund available. Business insurance guarantees that when the unexpected happens, your business does not have to suffer. There are many types of insurance available to businesses that can be purchased individually or as a bundle. Continue reading this article to decide which type of insurance you should invest in. After all, when you put your blood, sweat and tears into building a business, why would you risk damage or money loss when it is so easy to avoid?
1. Employers Liability Insurance
This type of insurance, also known as Workmans Insurance, is mandatory in the USA as employers are responsible for the well being and safety of their employees. Accidents at the workplace are very common and if one happens, it is necessary that the employer can cover the expenses caused by said accident.
2. Commercial Property Insurance
This one goes without saying. Small businesses are an easy target for theft as they tend to have low security and few people on the property. Commercial property insurance will cover any stolen property and well as cover cost for any damages caused. If you own a small business, insurance is highly recommended for those unexpected situations.
3. Vehicle Insurance
If your business provides company cars, or requires delivery vans etc., vehicle insurance is a must. It is a legal requirement to have every vehicle on the road insured, plus there are some benefits to buying a vehicle through your business. The insurance price can be lower, meaning you can add more vehicles to the policy, which adds value and efficiency to your business. Vehicle insurance also protects any tools or equipment that may be stored in your work van, for example, if you are a plumber, all your tools are covered.
4. Product Liability Insurance
This type of insurance relates to when a person is injured by a product sold to them, or their property is damaged by said item. Having product liability insurance shows that you care about your customers well being and safety. Whatever the product you sell is, whether it’s a vacuum, car parts or farm equipment, there is always a possibility that there is a defective product. This defective product could cause serious harm to a person or their property, which is why this insurance is a good idea as it could save you from a large lawsuit.
So thats the top 4 types of insurances recommended if you are a business owner, more specifically a small business owner! Small business insurance is a must as they are easy targets. Better have it and not need it, than to need it and not have it!