Stepping into the world of
business insurance can be quite tedious since you’re faced with insurance
terminology, new laws, regulations, and so on and so forth. This is why people
get an insurance broker or an insurance advisor to help them out and get the
best policy that suits them.
But you don’t need either one to
understand the 4 major types of business insurance. Knowing this as a starting
businessman is crucial since your business is an asset and of course, no asset
should be left uninsured. This is to help you run your business smoothly and
securely, without the worry of extra expenses that can ultimately cause major
setbacks.
So whether your business is
small, medium or big it’s best you get well acquainted with the 4 major kinds
of business
insurance! So to know all the major types and their ‘hows, what and
whys’, check out the list down below:
1. Property
insurance
If you own a physical business or
any property related to your business like storage, it’s best to get it
insured. Property is one of the biggest forms of assets and holds an important
role in any business. And when it gets damaged, the setback you’re going to
face can potentially hinder progress and force you to close down.
Calamities and disasters are no
stranger and can happen anything. Getting this insurance policy will safeguard
your property from fires, hurricanes, typhoons, floods and many more. This is
why property insurance is one of the most sought insurances around.
But bear in mind, that there are
tons of property insurance policies out there so you’ll have a handful of
choices. To get the best deal that suits your location, the number of assets
and the nature of your business, consider hiring an insurance advisor.
2. Vehicle
insurance
Another essential asset to
consider is your company’s vehicles. Due to the increase in vehicle traffic,
vehicle accidents are now more likely to occur plus you’re also left with natural
calamities.
And while you can check if your
personal insurance can cover any damages that happened on the job, it’s also
good to consider getting one separately. This is to ensure any damages to your
company vehicle will be covered.
So when picking out an insurance
policy for your company vehicle, consider the vehicle’s model, replacement
policy and so on. To get the perfect policy, consider working with an insurance
broker and get the best deal suited for your vehicles.
3. Liability
insurance
Liability insurance is a
business's best friend. This covers damages that happened in your facility and
damages that occurred during service. There are two kinds you should know about
such as general and professional liability.
General liability is made to protect your company from lawsuits.
Lawsuits for incidents that occurred to non-personnel in your facility. An
example would be: A child that slipped on a wet floor while grocery shopping
with her mom. Having general liability insurance will keep you covered if the
child’s mother chooses to press charges.
Professional liability, on the other hand, will protect you from
lawsuits of any negligence done by the company. May it be damages caused by the
company during service, unfit products and so on.
4. Employee
compensation insurance
Last but certainly not the least
is employee compensation insurance. This insurance policy is made to safeguard
your staff’s safety in the workplace. This covers your employee's medical and
hospital bills or even when they take paid leaves. Although not a lot of
businesses have this coverage, it’s still a good policy to consider getting.
And a great way to show
appreciation to your employees. The only way they lose the right to avail
themselves of the coverage is when they violate company rules during the
incident. Plus this insurance policy will also protect you from lawsuits filed
against you by your own employees. So for the safety of your staff as well as
your business, consider getting this insurance policy.
Takeaway
Now that you know all the 4 major
types you are now ready to run a safe, secured and worry-free business! And
remember, before getting any sort of coverage, make sure it lines up with your
needs. Getting all fourth will close all doors for setbacks, extra expenses and
worry.
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