The basic nature of insurance is a gamble. Life insurance is commonly thought of as a requirement for those with families. However, you may be better off going without.
Every brand-new entrepreneur will encounter liabilities within any industry. These liabilitiespresent a challenge to be solvedbefore even before the first employee is hired as evena single legal problem or negative occurrence could bring the business to a premature demise.
To protect them against these dangers, businesses fortunately enjoy many different potential insurance options. Allow me to offer some advice on the many insurance options available for any business…
1. Disposable Property
This insurance covers the expendables: equipment, signage, inventory and furniture in the event of a fire, storm or theft or other acts of God. Things like floods and earthquakes aren’t generally covered under standard property insurance policies. Check with your insurer to price a separate policy if your area is prone to these issues.
Company vehicles should be fully insured to protect businesses against liability in the event of an accident. While comprehensive insurance covers vehicles and is costlier, liability insurance has become a mandatory minimum in most states to ensure others on the road are protected. Employees using their own cars for business will be covered under their own personal insurance. One major exception to this includes delivery personnel when they are delivering goods or services for a fee.
3. Business Interruption
Business operations are usually interruptedwhen a disaster or catastrophic event occurs. If you are unprepared, your business may incur income loss from office inaccessibility, product manufacture interruption, or telephonic interruption. This typically concerns businesses employing the Brick-and-Mortar approach. Interruption insurance ensures a business against this potential loss.
4. General Liability
This kind of insurance insures a business against claims ofnegligence resulting from mistakes in performance. Different business arenas have custom problems unique to their industry. These can consequently be dealt with on a separate policy or rider for the business.
5. Product Liability
You MUST have product liability insurance if your business manufactures products for the general market. Although any businessmay make every conceivable effort to ensure its products are safe, it can find itself named in a lawsuit. This type of insurance ensures business protection in just such a case tailorable to a specific type of product.
6. Workmen’s compensation (ooops!)
Workmen’s compensation insurance is needed on a business’s policy when employees are hired. This sort of insurance covers a variety of hospital stays, short or long-term disablement, and if the employee passes away while on the job, and because of job-related reasons. Other mishaps or injuries accidental in nature, or some preexisting situations such as arthritis may end up costing the business in compensationsuits, even if employees are performing seemingly low-risk work.
7. Working out of your Home
Since small businesses often begin in the professional’s home,typical homeowner’s policies are not all-inclusive with coverage of the work-from-home enterprise as they might be if the business were located elsewhere.To ensure your policy coverage is the most appropriate for your particular situation, contact your agent to inquire about other policies that encompass any inventory you might carry, or miscellaneous business articles needing coverage to head off any potential legal trouble in the future.
A LAST WORD OF ADVICE:
With the right insurance in place, losses due to a lawsuit or catastrophic event can be avoided. Ensure your insurance is the right insurance for your business for the purpose you need it. You will safeguard your business’s profitability,productivity, and longevity.