Types of Business Insurance Every Business Needs
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Disclaimer: The views expressed in this article belong to an independent guest author and not Leaderonomics, its directors, affiliates, or employees. This is not financial or investment advice. Please do your own research and evaluate your risk appetite before investing.
If you own a business or are just starting one, you definitely want to make sure that it is financially protected against various kinds of financial damages. That is why many business owners put a lot of thought into what kind of insurance cover is necessary for their particular business needs.
With specific policies for numerous kinds of industries, your coverage can be as basic or as elaborate as you want it to be. Here are some of the most common options, as well as information on how they can help protect your company’s assets.
General Liability Insurance
This is the most common and basic type of coverage. If someone accuses your company of causing property damage, bodily injury, or damage to their reputation, general liability insurance will pay the litigation and settlement fees. Even if a legal claim is not made, it could cover medical expenses for accidents that occur on your company’s property. In addition to that, setting up a holding company might be the right choice if you own multiple businesses and want another layer of general protection against legal or financial issues.
Business Income Insurance
If your company’s physical property gets damaged and you are unable to run your business due to specific risks covered by the policy, business income insurance helps compensate for lost income. This kind of policy can provide you with the funds you need to pay your staff, rent, and keep your business afloat during a protracted closure.
This kind of coverage is typically beneficial for business owners who have physical locations where goods and services are offered (such as restaurants or cafes), as well as equipment and other forms of property that are utilised to create revenue (such as print shops).
Key Person Insurance
Key person insurance refers to life or disability insurance that a company has on its essential personnel. This kind of insurance plan compensates the company when it comes to replacing the key employee if they pass away or become incapacitated to continue working.
A key person insurance plan is a good choice for businesses whose (entire or partial) income is based on a single individual’s expertise, performance, or personal network. This insurance cover can also be applied to you as the business owner.
Commercial Property Insurance
Along with general liability and business income insurance, commercial property insurance (also known as business property insurance) is frequently included in business owners’ policies. This type of cover protects you against financial loss caused by particular kinds of damage to your company’s premises and physical assets. It is used to lessen the financial toll certain mishaps, bad weather, or other risks have on a company, making it a must for every business with valuable physical assets (such as computer equipment or anything that might be expensive to replace).
Cyber Liability Insurance
Cyber liability insurance is one of the most essential types of modern-day company insurance. Even if you don’t exclusively work online, hacking attempts can come from anywhere, starting from your video conferencing platform to the online photo editor that you use to create images and infographics for your presentations.
Cyber liability insurance provides cover in the event that your digital data gets hacked or otherwise compromised, and it can also cover the cost of data recovery. With more and more companies switching to a fully online operating model, this type of insurance has become increasingly relevant.
Professional Liability Insurance
If a client sues you for an alleged or actual error in judgement or bad advice, professional liability insurance can help financially protect you. Errors and omissions insurance and medical malpractice insurance are examples of professional liability insurance.
Your professional liability insurance safeguards you against clients who might try to sue you, by covering situations or occurrences that general liability insurance does not cover. In general, professional liability insurance is a requirement for anyone who offers some kind of service to clients.
Worker’s Compensation Insurance
Workers’ compensation insurance protects employers from lawsuits brought by injured workers by covering their medical costs and a percentage of lost wages following work-related accidents. Through this type of cover, employees are guaranteed a certain level of coverage for occupational injuries, while their ability to sue their employers is limited under these circumstances. Although there are rare exceptions, most states require companies with employees, particularly small enterprises, to hold workers’ compensation insurance.
Motor Truck Cargo Insurance
Cargo insurance, also referred to as motor truck cargo insurance, offers coverage. i.e. protects the covered property while in transit, loading, or unloading.
While operating the vehicle, each individual truck driver is entirely liable for the valuable cargo, and like the majority of trucking companies, they are aware of the asset's value. And the worth of the load might go up to a couple of millions of dollars.
If the goods in the truck are stolen or damaged, the company that possesses them will be most affected and suffer a major financial loss.
This is why this type of insurance, the Motor Truck Cargo Insurance was developed and that is to protect the driver or the driver's company from responsibility.
Which type of trucking cargo insurance would best meet your needs depends on a number of criteria, but whatever option you choose it will reduce your financial risk and provide you a greater sense of security.
Commercial Auto Insurance
The automobiles, trucks, and vans you use for business purposes can be covered by commercial auto insurance. If you own many vehicles that are necessary for your business operations then you must insure them, regardless of the size of your fleet. Company automobiles, vans and lorries for business use are all acceptable when it comes to what can be covered. Most commercial auto insurance policies can even cover box trucks and food trucks.
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This article is published by the editors of Leaderonomics.com with the consent of the guest author.
