As a business owner, you will doubtless be aware of the fact that you have to pay for many expenses each month. One of those crucial costs all firms must bear is insurance. It’s one of those products that we seldom use. Yet when the situation arises, we are glad that we have the cover in place.
It doesn’t matter if you’re a new startup business or you’ve been around for a while. What does matter is that you’ve got the right insurance products for your firm. Each company’s needs is different, and there isn’t a “one size fits all” solution. But, how do you know which insurance products you need?
Here are some classic examples of business insurance used by a plethora of enterprises:
General liability insurance
Are you likely to have visitors to your office? Even if the only visitor is the mailman, he could sue you if he got injured at your premises and it turned out that your office isn’t very safe!
To protect you against claims made by other people at your office, you need general liability insurance. All good business insurance firms can quote you on the level of cover that you need. That way, you don’t end up paying too much for your liability insurance.
Professional liability insurance
What happens if someone sues you because they think you offered substandard work? In those occasions, professional liability insurance will fight your corner for you.
Although most issues with work quality can get resolved, there are some occasions where such a result is not possible. For example, if one of your workers made an unsafe product and it caused a person to lose their life.
As dramatic an example as that sounds, it has happened many times in the past. Professional liability insurance is a must to protect against such situations.
Does your group of companies find it hard to get insurance cover for a particular type of risk? If so, what you need is captive insurance. In a nutshell, it’s a form of self-insurance.
What usually happens is that a parent company offers insurance to its subsidiaries. It thereby mitigating the risk of bankruptcy should a lawsuit get filed against them. There are many other captive insurance benefits, so it’s worth looking into if you’ve got a need for it.
Workers’ compensation insurance
As unlikely as it sounds, there is always the risk that one of your employees could get injured on the job. If that happens, and it’s an injury that requires medical attention, they will likely come to you for compensation.
Should that event occur, workers’ compensation insurance will take care of any claims made by your employees. All you have to do is contact your insurer and tell them what’s happening, and they’ll take care of the matter on your behalf.
Of course, if you work for yourself and get injured, you will usually have to cover any medical costs yourself. Still, there are some policies out there available for the self-employed.