From the day an entrepreneur starts doing business, he exposes himself to a number of risks, making it necessary to consider a few right insurance policies for his business. Remember, if you think that as you are a small business owner, you should save money and buying insurance is just an extra expense, think again. One lawsuit or a catastrophic event is enough to wipe out your small business, even before it has a chance to set off the ground.
Fortunately, small business owners have access to a wide range of insurance policies to protect themselves against various types of losses or damages. So, for a secure future of your business, make sure you consider the following insurance policies:
- Commercial Auto Insurance – This policy will protect vehicles owned or taken on lease by you. You can use the policy to protect vehicles that carry employees and equipments. With commercial auto insurance, you can protect your work cars, SUVs, vans and trucks from losses, damages, and collision.
- Workmen Compensation Insurance Policy – This insurance policy will offer coverage to employees who are injured during employment. Insurance companies offer wage replacement and medical benefits to your injured workers. However, in exchange for compensation, the injured employee gives up his/her rights to sue the employer. As a business owner, it is imperative to have a workers’ compensation insurance policy to safeguard you and your company from legal complications that may arise in case any of your employees meets with an accident.
- Product Liability Insurance – If your business manufactures products or offers services for commercial reasons, it is necessary to have a product liability insurance. Even a business that takes every step to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products or services to third-party. Product liability insurance protects a business in such a situation with coverage available that can be tailored specifically as per the product or business. For instance, if you have a bakery business and one of your customers seriously falls ill from food poisoning caused due to your negligence, your product liability insurance will cover you for damages.
- Property Insurance – As you may have some expensive items, including office equipments, inventory, and computers, you should consider buying a property insurance policy that will safeguard you and your business from mishaps like fire, theft, vandalism etc. You can also opt for business interruption/loss of earning insurance if you want to safeguard your earnings in case your business doesn’t work well. If your business involves dealing with antiques and artwork, make sure to buy an art insurance policy. The policy will cover your items, like fine art, pictures, gold, and antique silver jewellery, musical instruments, etc.; against various perils like accidental damage, burglary, theft, fire, etc.
- Professional Liability Insurance – Also called, Errors and Omissions Insurance, this policy protects you against accidents or negligent acts that may occur while rendering professional services. It is common for even the most skilled worker to commit a mistake. A case can be filed against you if a third-party suffers losses or damages by trusting on your advice. Without a professional liability insurance, you would be responsible for paying for those errors from your pocket. Here, a professional liability insurance policy can help you by offering you financial protection.
- Directors and Officers Insurance – Being a director is not an easy job. If one is held liable for his/her own decision or others director’s decisions, one could face serious financial repercussions with cases filed by creditors, suppliers, shareholders, etc. Here, Directors and Officers (D&O) policy comes to help. Such type of insurance policy covers directors and officers against legal cases that may arise due to wrongful decisions taken by them in their managerial capacity.
Any catastrophic event or loss is enough to derail your business’ growth. However, by having the right insurance policies, a small business owner can easily avoid a major financial loss. While, it is necessary to have the above listed insurance policies, it is equally important to know that the policies you are buying should offer you adequate coverage. There is no point in taking the policy if it is not sufficient. To find the right insurance coverage, you can take help of corporate insurance advisors, like SecureNow who will help you in choosing the right policy after comparing all the available options. In most of the cases, the policy is also issued within 24 hours.