When you run a business, nothing is certain. Storms, natural disasters, terrorism, and even pandemics are all factors that can wreak havoc on your company’s ability to operate. You should take time to do a business insurance check-up and make sure that you’re protected in case the unexpected happens.
In this article, we’ll go over the most common types of business insurance that you need to know about. So keep on reading for more.
1. Property Insurance
When you have business property insurance, you will be reimbursed for damages to your company’s property that results from a covered loss. The policy won’t just protect your workspace but also your contents. That includes business inventory, computers, office furniture, and other items that are essential to running the business.
A lot of property insurance policies will also provide for expenses that protect your company from further damage after a loss from something like a fire.
2. Liability Insurance
As the owner of your own business, you can be sued by other people for any damage that comes from the negligence of your business services that lead to hard to others. This can be from a defective product or something else.
When you have liability insurance, your costs will be paid for if you’re sued up to your policy limits. Your liability policy is also going to cover the cost of medical bills of other people who are hurt by your company.
This could be especially important if you run something like a child care business. It’s also possible to buy fiduciary liability insurance. This covers claims made against the administration of your benefits policies.
You should also consider utilizing a captive insurance company. This will allow you to receive a high level of service with tailored coverages that can fill the gaps in your current business insurance policies.
3. Workers Compensation
Many states will require you to carry worker’s compensation insurance. This policy will pay for the lost wages and medical care for employees who are injured on the job. The coverage pays damages regardless of who is at fault in the accident.
The policy pays compensation, no matter who is at fault for the accident. If the worker passes away, then the policy will send money to that person’s family. If you have a very small business, you might not be required to carry this kind of insurance.
However, you should still consider carrying it because you will be protected from legal liability when a worker gets injured on the job.
The Importance of Knowing About the Most Common Types of Business Insurance
Hopefully, after reading the above article, you now understand what the different types of business insurance are. As we can see, by knowing about these different types of insurance, you will be able to make smarter and more confident decisions about how to protect your business.
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