Types of Business Insurance that Every Business Should Have
Both small and big businesses need business insurance to ensure that they survive and succeed in the long-term. There are many types of business insurance, but we can narrow down to five most important that every business should have.
Besides the fact that this insurance policy is a requirement under the law, workers compensation insurance is very important for your employees. Having this policy is required under the law in many states in the U.S. This insurance policy allows for employees to be compensated for medical costs and a portion of the wages lost as a result of injury in the workplace. The law is always different in different locations which makes it very important to work with an insurance professional to ensure that a company the coverage prescribed under the law.
General liability insurance is also a must-have for businesses. This insurance covers the business against claims for injuries or accidents in the workplace. The policy helps a business pay for things like medical expenses, slander, property damage or even faulty products. This insurance cover is taken in anticipation that someone might sue the business. Failure to take this insurance policy opens up the business to situations where it may lose a lot of money that it had not planned for.
Professional liability is also another common cover for businesses. This is the insurance coverage commonly referred to as malpractice insurance. One can use this insurance coverage to protect themselves and the business from lawsuits that allege negligence in the provision of professional services or errors made in the provision of services. This insurance is important for service-based businesses although it applies to other businesses as well. Even as a business strives for excellence, mistakes do happen, and it is important to be cushioned against the expenses that come with such mistakes.
You cannot mention business insurance without property insurance coming to mind. Property insurance helps businesses avoid the risk of losing all their property in case of damage or destruction by whatever factors insured against. Insurers like ASAP have all-risk policies that protect different types of property against destruction.
Interruption insurance is also important business insurance that any business out there should consider taking out. Imagine being compensated for loss of revenue when a catastrophic even occurs, isn’t that a nice thing?. This coverage is important for businesses that have physical stores like retail stores. A business owner can avoid major financial loss if they have this insurance cover.
Every business should be insured without an appropriate insurer like ASAP to avoid making unexpected payments. This way, a business can survive and thrive in the highly uncertain business environment.