Apart from being legally obligatory, business insurance is one of the most sensible ways for SMEs to big corporate to protect their business from possible threats and manage risk. With the emergence of assorted business insurance plans, now it has developed into an effective tool to help businesses manage potential losses that crop up due to unforeseen events. According to Charles Spinelli apart from mitigating different risks that lead to business loss, having insurance helps businesses gain an increased number of clients, attract industry talents and retain them, and fetch faith from customers, vendors, investors, and stakeholders for its sustainability and growth. Let us have a look at 4 vital business insurance that a business owner must own in the first place.
General Liability Insurance
Business owners are held legally responsible for ensuring the safety of their employees, clients, and visitors on the premises. Furthermore, they remain responsible for causing damage to others, and falsification in business adverting. Here comes general liability insurance to protect the business from all sorts of financial losses that may occur as a consequence of these risk factors. Chiefly, there are three types of general liability insurance counting property damage, personal and advertising injury, bodily injury, and compensation.
Property damage insurance offers coverage for replacing or repairing damage to any property of someone else by the business. Personal and advertising injury prevents the owner from copyright theft for using in the ads that lead to business ethical offense. Physical injury protects by covering the medical expenses of an outsider, say a service provider, if injured on the owner’s business property. The insurance company covers the medical expenses for the treatment of the person and thus protects the employers from facing personal injury litigation.
Professional Liability Insurance
Aka errors and omission insurance, professional liability insurance is another type of vital business insurance business owners should have. The insurance provides coverage for businesses and professionals like lawyers, consultants, and accounting service providers and protects them against claims of inaccuracy or negligence in services from their clients. Typically, professional liability insurance covers negligence, copyright violation, defilement of good faith, or fair dealing says Charles Spinelli. Sometimes the insurance is also called professional indemnity insurance. For example, a customer makes the business owners legally responsible as they failed to offer the agreed-upon standard of accounting services which has hammed their business. Under such circumstances, having professional liability insurance will cover the cost of damages caused by the alleged claim after necessary investigation if it is proved that the client’s claim is justified.
Commercial Property Insurance
Having commercial property insurance is essential as it helps cover any commercial property damage due to theft, vandalism, fire as well as natural disasters like floods, tsunamis, hurricanes, etc. These days, a range of commercial establishments including manufacturers, wholesale and retail businesses, service providers, and non-profit establishments prefer equipping them with commercial property insurance. While opting for insurance, a business owner needs to consider things that are valuable for the business to take them under insurance coverage. For example,
- Premises where the business is located, regardless it is owned or rented.
- All valuable office equipment that comprises, computers, telecommunication systems, hardware, etc. apart from furniture and fixture, regardless they are leased or owned.
- All essential business documents including accounting records.
- Equipment used in the manufacturing department.
- Research and development cell.
- Inventory
Workers’ Compensation Insurance
While having workers’ compensation insurance is a legal mandate for businesses regardless they are under the jurisdiction of the federal or state government. Advantageously, worker’s compensation insurance help protect businesses in three distinct ways. Firstly, it helps by giving coverage to employees who come across work-related injuries and ailments. At the same time, it facilitates the owner from the risks of facing lawsuits by injured or ill workers on the job. The insurance also protects a business owner to stay compliant with the regulations and avoid possible penalties or imprisonment.