Do you own or manage a small business? Are you wondering what kind of insurance you need to make sure you and your employees are protected?
These days, insurance might also be a requirement for certain types of businesses, depending upon your state. It’s important to be aware of how it can help make your enterprise more secure.
Here are some types of business insurance you need to be aware of.
1. Workers Compensation
Workers’ comp insurance can protect you in case one of your employees gets hurt on the job. It can cover medical expenses, including emergency room stays and hospital visits.
Workers’ compensation can also cover ongoing rehabilitation costs, such as physical therapy. It will also provide for any physicians or specialists a worker may need to see after they’re injured. in addition, it can cover death benefits in case an employee dies in an accident.
Injured employees may also miss out on wages if they can’t work due to an injury. Workers’ compensation can be used to cover this expense.
Generally speaking, an employee can receive workers’ comp insurance no matter who was at fault. So, if an employer, customer, or coworker caused the accident, your staff member can get covered as long as the injury was work-related.
2. General Liability Insurance
While workers’ compensation can cover employees who get injured on the job, general liability can cover anyone else who gets hurt. This could include customers or vendors.
For example, if a customer slips and falls while visiting your place of business, general liability insurance can help to pay their medical bills.
General liability insurance can cover more than just bodily harm. It can also cover other potential lawsuits that are brought against your business.
If, for example, your business causes harm to an individual or company through its advertising, general liability insurance can cover you. It can also cover any copyright infringement that occurs if someone else’s work is used in your business advertisements without permission. In addition, general liability insurance can cover any reputational harm you may cause.
General liability insurance can cover medical expenses, damage claims, and administrative costs incurred while handling claims. It can also cover court costs, judgments, and settlements you pay for covered claims.
General liability insurance won’t cover any damage to your own business property. It won’t cover any errors in your company’s professional services. And it also won’t protect you if harm is done intentionally by one of your employees.
3. Professional Liability Insurance
Professional liability insurance can protect you and your business in case an error is made. This is particularly helpful if your client or customer incurred a financial loss as a result.
Professional liability insurance can cover any claims of negligence, misrepresentation, or inaccurate advice that may get made against your business. Your client can sue your business even if you haven’t done anything wrong. If you don’t have insurance, legal fees will need to get paid out of pocket.
Some states require professional liability insurance. It’s strongly recommended in cases when you offer services directly to customers, or if you regularly give advice to your clients.
The actual cost of your insurance will depend upon a number of factors. These include policy details, your type of business, and your business size. If your business involves a lot of advising and recommendations, it could be in your best interest to invest in professional liability insurance.
4. Commercial Property Insurance
If you have a physical place of business that you want to protect, commercial property insurance could be a smart move. It helps protect your business and its physical aspects.
Commercial property insurance can protect your building, equipment, tools, and inventory. It can protect you against incidents such as thefts, fires, or natural disasters such as lightning strikes.
You may be able to add extra items to your policy for protection. These could include important documents or temporary storage. Commercial property insurance won’t cover employee neglect or intentional damage.
5. Business Income Insurance
Sometimes, things outside of our control can cause a loss of income from your business. These include fire damage or theft. Business income insurance can help you replace income lost due to one of these events.
Business income insurance allows you to protect your employees while continuing to pay payroll and monthly bills while you’re waiting for your property to get repaired. It may be wise to invest in this type of insurance if is dependent upon a particular location or certain types of equipment.
Business income insurance is popular for service businesses, including restaurants and hair salons. It may also be necessary for software companies that rely on physical and digital property.
You may be able to purchase add-ons to your business income insurance depending upon your needs as a company. You may, for example, require extra insurance for dependant properties, such as your manufacturer. Otherwise, you may want an extension in case your cloud storage gets interrupted.
Some businesses have trouble regaining their previous level of income after a catastrophic event. You may also wish to purchase extended business income insurance to cover your expenses while you try to rebuild your business.
Types of Business Insurance
Owning a small business comes with independence, prestige, and the opportunity for financial gain. However, it also comes with a good deal of responsibility. Once you’ve learned the types of business insurance that can help your enterprise, you’ll be on your way toward a prosperous future.
Don’t stop getting smart about insurance now. For more information on workers’ compensation, contact us today.