From the day a company is founded, entrepreneurs are exposed to certain risks. Even before the first employee is hired, the company is at risk, so adequate insurance is important. One downfall or catastrophic event can be enough to destroy a small business before it even has time to emerge.
Fortunately, companies have access to a variety of insurance policies to protect them from this peril. Here are some types of insurance companies that you should get as soon as possible.
1. Professional liability insurance.
Professional liability insurance, also known as Errors and Errors (E&O), protects companies from claims for negligence due to damages resulting from errors or non-compliance. There is no universal policy for professional liability insurance. Each industry has its own set of issues which are addressed in specific company policies.
2. Property insurance.
Property insurance is mandatory regardless of whether the company owns or rents the premises. This insurance covers equipment, signs, inventory and furniture in the event of fire, storm or theft. Events of mass destruction such as floods and earthquakes are usually not covered by standard property insurance. If your area is prone to this problem, contact your insurance company to price a separate policy.
3. Workers’ compensation insurance insurance.
Employee insurance compensation must be added to the company’s insurance policy after the first employee is hired. This includes sickness, disability, and death benefits if an employee is injured or dies as a result of working for this company. Even if the employee appears to be doing low-risk work, slip and fall injuries or illnesses such as carpal tunnel syndrome can lead to costly claims.
4. Home business.
Many professionals start their own small business within their own four walls. Unfortunately, household contents insurance does not provide the same protection as commercial property insurance. If you run your business away from your home, ask for additional insurance to cover your equipment and inventory in the event of a problem.
5. Liability Insurance.
If your company manufactures products for sale on the Common Market, product liability insurance is mandatory. Even a company that takes every possible measure to ensure the safety of its products can be sued for damage caused by any of its products. Liability insurance covers the company in such cases, and insurance coverage can be tailored specifically to certain types of products.
6. Car insurance.
If a company vehicle is to be used, it must be fully insured to protect the company from liability in the event of an accident. Companies should at least insure themselves against damage by third parties, but these vehicles are also fully insured in the event of an accident. If employees use their own cars to work, their personal insurance will cover them in the event of an accident. The big exception to this is when they deliver goods or services for a fee. This also includes delivery staff.
7. Business interruption insurance.
If a disaster or catastrophic event occurs, business operations are likely to stop. During this time, your company experiences lost revenue because your employees are unable to work in the office, manufacture products, or do sales promotions. This type of insurance is perfect for companies that need a physical location to do business, such as: B. Retail Stores. Business interruption insurance compensates the company for lost revenue during this event.
With the right insurance, companies can avoid large financial losses due to legal disputes or catastrophic events. Ask your insurance company what type of insurance is recommended for your type of business and implement this plan as soon as possible.