“Treat your business like your second child.” If so, just you like you got a group mediclaim policy for your entire family, you should get small business insurance policies even for your new company. This is essential to mitigate possible risks.
But, of course, there are many types of small business insurance policies out there; some are essential, others could be an unnecessary expense. To help you make the right choice, here are 5 types of insurance you should consider to protect your new business:
- Property Insurance – Also called fire insurance policy, this is something almost every business owner opts for. In case of fire, as well as theft, lightning, flooding and inundation or any other unfortunate events, your company can sustain huge losses. Property insurance covers your inventory, furniture, equipment, and signage. There are several specialized types of property insurance, like standard fire and special perils policy and burglary insurance.
- Business Income Insurance – Also called business interruption insurance, this policy covers the loss your business may suffer after a disaster, which itself gets covered under the fire insurance (property insurance) policy. For example, if your establishment was destroyed in a storm or fire, the business will likely remain shut until the repairing work is complete. In this shutdown period, the income that you lost, this insurance covers that.
- Workers’ Compensation Insurance – If you have employees, what if they sustain work-related injury or illness? What if they suffer a fatal accident at work? This is where the worker’s compensation insurance comes in. It provides coverage for employee’s medical care, disability expenses, lost wages if they require time off, funeral expenses, and more.
- Product liability Insurance – If you sell any tangible products (say you’re a manufacturer or a distributor), your business should be shielded against lawsuits from people who possibly suffer either a bodily injury or property damage due to your product. Depending on what exactly you sell, your product liability insurance can be tailored accordingly.
- Professional Liability Insurance – If your business revolves around your expertise in any specific area and you work directly with the customers/clients (say you’re an accountant, lawyer, doctor, or anything else), professional liability insurance is a must. It will keep you and your business protected from claims of negligence, malpractice, and other related things that are initiated by the customer/client. This is also called errors and omission insurance.
Consult A Certified Insurance Broker
As mentioned earlier, there are many types of small business insurance policies – some of which are essential, others are unnecessary. These five insurance policies are often considered to be very important. In addition to them, your business may require other types of policy as well to put off risks; which ones depend on the kind of business you run.
It’s best to consult a certified insurance broker. They will not only help you understand these policies better and which ones your business may require, but they can also help you compare insurance quotes from different insurers and buy the best policy at the right price. Find one such insurance broker today and talk to them about your small business insurance needs.