After months of brainstorming and planning, you’ve finally decided to make your business idea a reality. One thing you should know, however, before jumping in head first is the risks you will be exposing to yourself and your new business. And these risks are no joke: they can wipe your business off the market even before you earn the first revenue. This is why you need to make sure to insure your business before taking the next step.
When thinking of the best insurance policy to buy, there are many factors for you to consider, which is why you need to first understand the insurance requirements of your business before making any concrete decisions.
So what are some business insurance policies you should look into purchasing? Let’s take a look at the top five types of business insurance that you can buy and why they are essential to a successfully-run business.
General liability insurance
Think of all the risks that your business is exposed to and imagine the cost of meeting all the expenses that might be caused by these risks. The cost will surely be too high and can lead to the collapse of the business. This is why general liability insurance is vital – because it will cover the most common risks that any new business might befall. Claims emanating from risks such as accidents, injuries, or negligence are all covered by this type of insurance.
While you should expect to be sued by anyone, business competition can bring the claws out! You can also be sued by employees, clients, suppliers, and many other people you work with and who work for you. You need to be cushioned from the legal expenses that might arise, and the best insurance for this is general liability insurance.
Have you ever wondered why some companies attract high quality employees? Providing them with life insurance is among the factors. For your company to perform well and bring in more revenue, the staff needs to be motivated. You can have a plan where you provide life insurance over 40 policy to those individuals who fall in that age bracket, especially the executives.
Without professional employees, then your business has little chances of surviving, in any competitive era. You can even go ahead to identify key players in your business and provide them with Key Person insurance in order to cushion them against any emergency that might come their way. What you achieve by this is a more focused and motivated workforce that knows they are being well taken care of.
Think of all the resources you have put into your business: money, time, brains, and equipment. Now imagine all of it coming to an end in an instant, to the point where you are left with nothing! To avoid such a scenario, take up property insurance that will help secure those things you’ve spent the most on. With this type of insurance, you can rest easy knowing that even if something sudden happens like a fire, you’ll be able to get part or all of the insured items. Insurance consultants will always advise you to get the “all-risk” insurance which covers everything in your business. However, take note that the premiums on this type of insurance are a little bit more expensive.
Workers’ compensation insurance
This type of insurance is mandatory in most states and provides coverage for medical expenses as well as part of the lost wages for employees who are injured on the job. Workers’ compensation insurance is responsible for the compensation of employees who get ill or injuries while on duty.
This insurance is necessary as it allows the employees’ lives to stabilize after an accident or sickness. As the owner of the business, this policy is beneficial to you as well. For as much as people might want you to see it as encouraging carelessness on the part of the employees, the truth is that it makes them work harder because they know they are safer and taken care of. This will only help to bring in more revenue and better employee satisfaction.
Business interruption insurance
Many things outside of your control can affect your business. Imagine a case where there is a catastrophic event such as a flood or fire. This will definitely interrupt the operations of your business. To be on the safe side, you need an insurance policy that will cover you from the effects of the interruption. The best policy for this is the business interruption plan, which cushions you from the losses that will be made during a such a time.