Business insurance is a type of insurance that is targeted at protecting businesses against loses that may occur during the normal running of the business. Business insurance is a type of insurance that is purchased by businesses rather than individuals. From the very first day a business starts running, that business is exposed to certain risks even before the first employee is hired and that is why it is important to have the right type of insurance in place.
Fortunately, businesses have access to a wide range of insurance types to protect them against various dangers associated with the day to day running of every business. Here are some business insurance types that a business must have in place as soon as possible:
- Professional Liability Insurance: Professional liability insurance (PLI) also known as errors and omissions (E&O) insurance is a type of business insurance that protects professionals such as accountants, lawyers, and physicians against errors arising from negligence and other claims initiated by their clients.
- Property Insurance: Property insurance is a type of business insurance that provides financial reimbursement to the owner or renter of a structure and its contents in case there is damage or theft, and to a person other than the owner or renter if that person is injured on the property. So, whether a business owns or leases its space, property insurance is a must.
- Workers’ Compensation Insurance: this is a type of business insurance that is government-mandated. It provides benefits to workers who become injured or ill on the job or as a result of the job. It is effectively a disability insurance program for workers, providing cash benefits, healthcare benefits, or both to workers who suffer injury or illness as a direct result of their jobs.
- Home-based Business Insurance: This is a type of business insurance that covers for property damage, injuries related to the business (like a client who takes a fall in your office), employee injuries and lawsuits when you a business or company on your residence/home. While some entrepreneurs rely on their homeowners insurance policies, these policies may not be sufficient at all.
- Product Liability Insurance: This is a type of business insurance that covers against damages arising from one of a company’s product. It is also designed to cover against unforeseen circumstances arising from defects in the commodities, or goods sold, supplied, serviced or processed by or on behalf of the insured or defects in the containers of the goods or wrong labeling thereof.
- Business Interruption Insurance: This is a type of business insurance that covers for lost income in the event that business activity is halted or affected by natural disaster. This type of insurance also covers operating expenses, a move to a temporary location if necessary, payroll, taxes, and loan payments.
- Cyber Liability Insurance: This is a type of business insurance that helps cover the costs of a data breach or other cyber incident at your business, as well as the costs if you’re sued over your client’s data breach.
- Hired and non-owned auto insurance: This is a type of business insurance that can help pay for accidents involving a personal, rental, or leased vehicle that is used for business purposes.
- Commercial auto insurance: This is a type of business insurance that covers medical expenses, property damage, and legal bills if your business vehicle causes an accident.
Insurance can help protect business owners and independent professionals against everyday risks, such as mistakes, stock or premises damage, and legal costs. Some policies can even protect against business interruption and supply chain breakdown. This protection means that, should your business suffer an unforeseen knockback, you can feel confident that you and your employees are protected. Meanwhile, your insurer can help to get your business back up and running again quickly.
Tips to consider before buying business insurance:
- Know the types of business insurance.
- Consider what insurance may be legally required.
- Understand your industry’s risks.
- Prioritize coverage over business insurance cost.
- Learn what might affect your insurance rates.
- Consider your deductibles.
- Overestimate your insurance needs.
- Work with top-rated insurance providers.
- Read your business insurance policies thoroughly.
- Don’t hesitate to ask for help.