As an entrepreneur, it’s your responsibility to protect your business against unexpected tragedies like loss or failure of assets, legal claims and injury to working employees.
Choosing the correct type of insurance is crucial for the success of your business.
By taking out insurance for your business, you can still continue running your business in spite of those tough times and circumstances.
For example, if a computer gets damaged in your workplace, the correct type of business insurance policy will either arrange for a replacement for your computer or cover the costs associated with it.
Also, buying insurance is not just about protecting your business from unexpected losses but it can also have a positive effect on attracting a pool of highly talented employees for your business.
Nowadays, job seekers look for packages that offer benefits to them such as health insurance, workers’ compensation insurance etc.
If your business doesn’t provide such perks, you might lose out on a highly talented employee for your business.
When it comes to searching for the correct type of insurance for your business consider the following:
• Consider your risk including inventories, equipment and business property.
• Contact an insurance expert who knows your industry well.
• Evaluate your insurers properly. Ensure they are trustworthy and have the ability to pay claims.
• Re-examine all your risks and insurance needs at least once a year.
How much does business insurance cost?
The charges that you will pay for your business insurance will completely rely on:
• The kind of business you run
• Your yearly turnover
• Number of employees you have
• The size of your location
• The level of cover you require
Below are some types of insurance that you should consider for your business:
Professional liability insurance
If your business is not involved in selling any items or services but instead offers a creative service, you need to take out professional liability insurance for that. This insurance is also known as errors and omissions insurance.
This coverage will protect you when customers assert that they have faced a monetary loss because of a blunder or oversight in the service offered by your business.
For example, if you are an interior designer and a new restaurant owner has hired you to design their interior layout.
If you won’t be able to meet the closing deadline due to some unfortunate circumstances, which would lead to a big loss for the restaurant owner you may have to deal with a claim related to the loss of income suffered by the restaurant because of the late opening.
Professional liability insurance could help protect you from such costs associated with legal proceedings.
Property insurance
This insurance provides compensation if your business property gets damaged due to fire or theft.
This not only covers your organisation’s building or structure but also your personal property like inventories, raw materials, machinery, computers etc.
Apart from protecting your physical assets, it can also offer funds for your business when you are trying to bring your business on track after a terrible loss or unexpected tragedy.
Workers Compensation
You never know if some workplace incident causes harm to any of your employees.
By purchasing this policy, you will be able to look after your business in case an employee won’t be able to work because of some injury or sickness.
As an entrepreneur, it’s important for you to also buy workers’ compensation insurance as it protects your employees as well as your business from legal problems.
Cyber liability insurance
If your business has an online presence, buying this type of insurance is necessary.
If your business collects data and information related to VISA cards or even personal information like names, addresses and contact numbers any data breach that results in a financial loss to your customers can destroy your business.
Such breaches can bring down your business’s growth and can cause severe financial losses too. This insurance can protect your entire business against such issues.
Product liability insurance
This insurance covers your business in case any damage is caused by a product manufactured by your firm.
Remember, this insurance will not provide cover if your product stops working or doesn’t work in the way it was supposed to. It only covers cases where your product has caused harm to someone.
This insurance can protect you from high legal and medical expenses that you can face in such cases. Below are some issues that result from product liability claims:
• Defective products
• Products that cause physical harm to a customer
• Products that cause damage of property
• Illness due to food items or beverages
For example, an online store can make and sell battery-powered toys. Due to some bad wiring in the toys, it gets overheated potentially causing harm to a customer. In such a case, product liability insurance will have you covered.
Business owners’ policy
This policy is a package which combines all the policies that are necessary for a small business.
Often, business owner’s policy includes property insurances liability, business interruption as well as crime insurance.
Based on your company’s needs and requirements you can alter the package later on. This policy is often inexpensive than purchasing each policy individually and this way you can save money too.
But, before buying this package of insurance, contact an insurance agent to find out if this policy suits your business needs or not.
Income stabilisation weather insurance
Not all people are familiar with this type of insurance that covers natural disasters like earthquakes, floods, tornadoes etc. Apart from this, there are also policies that cover losses resulting from unpleasant weather conditions.
This kind of policy covers profits that you lose because of adverse climatic conditions and is really helpful for those businesses that totally relies on outdoor locations such as restaurants, golf courses etc.
Before taking out any insurance policy for your business make sure that you read the terms and conditions carefully. Also ensure that you are not duped in the process of taking out insurance.
In the UK, millions of customers had been mis-sold PPI (Payment Protection Insurance) policies by their moneylenders and banks leading to billions of pounds worth of compensation.
Even today many customers are looking to make a claim for PPI, to get back money rightfully owed to them. Ensure that something similar is not happening to you.
Mis-sold PPI policies by their moneylenders and banks leading to billions of pounds worth of compensation. Even today many customers are looking to make a claim for PPI, to get back money rightfully owed to them. Ensure that something similar is not happening to you.
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