Three Types of Business Insurance
If you run a small business, then you have to be familiar with different types of business insurance.
Getting the right insurance for your business is integral to ensuring that your company’s data, property, and all of your employees are well looked after. It may feel like an unnecessary expense at times, but ignoring obvious insurance needs will land you in hot water one way or another. When something goes wrong, you need a safety net in place.
Today, we’re going to discuss three important types of business insurance. Whether you’re just starting out as an entrepreneur or you’ve been in business for years, read on and find out how to protect yourself.
1. General Liability Insurance
General business liability insurance is the most important part of the business owner’s policy that combines general liability, commercial property, and business income. You can find out more about the BOP at policysweet.com. General liability is put in place to protect you against lawsuits from people outside of your company, whether it be a former employee or a customer.
It covers bodily injury to someone else, damage to another person’s belongings, and libel. Your company needs this type of insurance, no matter if you have a commercial space that customers come to or you offer services where you enter people’s homes. In some industries, like construction, companies are required to get general liability insurance.
2. Workers’ Compensation Insurance
Workers’ compensation is a form of small business health insurance that gives your employees a financial safety net if they are injured on the job. These funds are meant to cover missed time at work from an injury, any medical bills that result from treating the workplace injury, and the ongoing care that the employee may need as a result of the injury.
It’s also in place to protect the employer from lawsuits from employees that are injured on the job. In most states, you’re required to have workers’ comp insurance if you’ve got any employees. There may be penalties, fines, or other charges if you’re found without workers’ comp insurance.
3. Commercial Property Insurance
Commercial property insurance protects any buildings or equipment that you rent or own to run your business. Should anything pertinent to the operation of your business be stolen, vandalized, or broken, commercial property insurance can help you get back on your feet so you don’t suffer major financial loss. This includes the building you operate out of, computers, and production equipment.
It’s important to closely read the details of your commercial property insurance policy to see if it covers damage related to natural disasters, like earthquakes or floods. Companies that operate in places with a higher likelihood of natural disaster may have to purchase separate commercial flood insurance.
Get All the Business Insurance You Need
Getting the right business insurance policies in place is important for the overall functioning of your company. If your customers, employees, and property are all insured properly, then you can operate comfortably knowing that you’re covered in the event of an emergency.
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