A good insurance policy is a pre-requisite for every business so that there is a financial backup always ready in case of unwanted accidents, natural disasters or even lawsuits. It is important to have a business insurance policy that provides adequate protection as this is crucial for saving your business at the time of crisis.
There are various types of business insurance that you can choose from. While some policies provide limited protection, others act as a comprehensive shield for your business needs. Also, some policies are mandatory as required by the law, while others are optional. Below is a list of certain types of business insurance that you can look out for:
Professional liability insurance: This type of insurance coverage provides protection to a business against negligence claims due to harm that arises from the inability to execute the required work. This policy is mostly a customized policy as every business has its own concerns that can be covered only in a personalized insurance policy.
Worker’s compensation insurance: This insurance provides protection for employees of a business organization. Under this, the employees get coverage for medical bills, any disability and death benefits as well in case they get injured or die while performing their duties. Slip and fall injuries and other related medical conditions are also covered under this policy.
Property insurance: Property insurance is mandatory whether a business organization owns the office space or has got it on lease. This type of insurance policy provides coverage for damage occurred to the office equipment, furniture or inventory due to fire, storm or theft. However, you will require a separate insurance policy if you want coverage for your office property from events such as floods or earthquakes.
Product liability insurance: This type of insurance is required if you manufacture products that are put up for sale in the market. Anyone can file a lawsuit against your business if any of your products causes harm to them. In this instance, product liability insurance comes into picture and gives personalized protection for the specific type of product manufactured by your company.
Home-based business insurance: A homeowner’s insurance policy does not provide protection for small businesses that function from homes. It is best to get in touch with your insurance policy provider to get additional insurance for protecting your home office equipment and inventory in case of damage caused due to any unwanted incident.
If you are using vehicles for the purpose of your business, it is imperative to get them fully insured to avoid trouble in case of an accident. A comprehensive insurance policy works best in this scenario as it provides protection against third-party injury and also covers the vehicle as well. If the employees are using their personal car for business purposes, their personal insurance will provide coverage in case of an accident.