Jun 19, 2019From the moment an entrepreneur decides to launch a small business, they are exposed to various risks that could potentially wreak havoc on the company.
Fortunately, there are insurance policies that you can purchase in order to secure profitability.
Here are 7 types of coverage that every small business should know about.
Professional Liability Insurance
The benefit of having professional liability coverage is that it protects your company against negligence claims that could come from mistakes or failure to perform.
Every industry has its challenges and concerns, so it is important to ask the insurance provider to customise the policy in order to suit the business as well as the market.
Property Insurance
Whether the company leases or owns its space, getting property insurance should be of high priority.
This type of insurance covers all the inventory, furniture, equipment, and everything else on the premises from unexpected events like water or fire damage.
It’s important to know what the policy covers beforehand in order to avoid issues down the road.
It’s also important to note that conventional policies don’t cover property against calamities like floods and earthquakes.
Product Liability Insurance
This is a must for companies that manufacture and sell products either through a storefront or online.
Flaws during the manufacturing process can lead to low-quality products that can potentially cause injury to the clients.
If that happens, the victims can file a case in court, which can result in a huge loss of money.
Product liability coverage protects the company from such cases. It’s structured to suit the kind of products that you sell and the current industry standards.
It is important to ensure you have a proper understanding of the policy before signing the documents.
Business Interruption Coverage
When a catastrophic event affects your business, it can lead to loss of income due to the inability to manufacture products, make sales or even an employee’s inability to work.
Fortunately, you can protect yourself and your company with business interruption insurance.
This policy is structured to compensate your company for lost income and clients during catastrophic and unforeseeable events.
It is important for businesses that run from a brick and mortar location and depend on their premises to business.
A retail store is an excellent example of a business that requires this.
Vehicle Insurance
As your company scales up, you will require a fleet of vehicles to perform various tasks like delivering products.
To protect your company from liability in case of an accident, all vehicles need to be insured.
This means if your employees are using company cars for work purposes, then your policy will cover them if they get into an accident.
Travel Insurance
For any business person on the go, this coverage is really important. The ability to cover your items is priceless, particularly if you travel overseas for work.
If your luggage gets lost or your laptop is damaged in transit, then your travel insurance policy can save the day.
Such policies can ideally cover your family and the business should the worst happen on your trip.
Workers’ Compensation Insurance
This is another important policy to have if you have employees.
It provides coverage for medical costs as well as lost wages for an employee who falls ill or sustains an injury while working.
Generally, this type of insurance just covers injuries and illnesses that occur in the workplace, including things like slips and falls.
Conclusion
So there you have it, 7 important types of business insurance that any small business should have.
No business is immune from the unexpected. Any business can quickly find themselves in a mess and these policies help negate this should the worst happen.
For an obligation-free, competitive insurance quote, professional insurance advice or more information on how we can help you, please contact one of our expert consultants today on 1300 356 496 or send a message through our website.
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