When it comes to running a business, protecting your firm is essential and being proactive is the best way to secure your company’s future. Insurance is just one area where you can be proactive and ensure that your company will thrive for years to come. However, many new business owners find it overwhelming to find the perfect insurance coverage and often purchase policies that don’t have everything they need. That’s why we’ve put together this practical guide to help you understand the different types of insurance available on the market today and how you can secure your company’s future with insurance.
Often referred to as business liability, this type of insurance policy shields you against claims involving injuries or property damage from your products, services, or that occurred in your place of business. For example, suppose a customer in your store suffers a slip and fall, you may be liable for damages and face a claim that without insurance could result in a significant loss of funds. For more information about how you can protect your company, check out The Hartford for their range of business insurance.
If your company has a physical location, property insurance is vital to protect your business from theft, fire, and flooding. Any machinery, furniture, equipment, and inventory will be covered in case of damage or theft, which will get you back up and running again in the event of unforeseen circumstances. In addition, many business owners add extras like business interruption onto this policy to protect them from loss of earnings due to unexpected incidents.
If your business operates a fleet of vehicles, you will need to ensure that your assets are covered by insurance, whether you hire or own the vehicles. This type of insurance is also helpful if you currently use your personal car for your business needs. You will be covered if involved in an accident while performing business duties. Many business vehicle insurance policies also cover theft, accidents involving third parties, and damage from natural disasters.
While general liability insurance covers your customers from harm due to accidents or your products and services, workers’ compensation insurance protects you and your employees from injuries that occur while they are on the job.
Regulations surrounding workers’ compensation vary from state to state, but most require business owners to have an active policy in place at all times. Typically, a policy would include coverage for any needed medical care, such as hospital visits or prescriptions resulting from injury and any wages loss due to an inability to work during a recovery period or as a result of the injury.
Also known as a business owner’s policy, the umbrella policy is a combined insurance that covers you against numerous types of risks. This type of insurance does not contain policies for professional liability, auto insurance, or workers’ compensation; however, it typically includes property insurance, business interruption, and certain types of liability insurance. Umbrella Policies are a popular choice for small business owners as it combines many essential types of insurance into one package.