TYPES OF INSURANCE EVERY SMALL BUSINESS OWNER SHOULD HAVE FOR HIS BUSINESS
In a country like ours, it is not easy to set up any business. With diversity and changing trends, there is always a certain amount of risk involved. We cannot foresee any circumstances or calamity that may arise and we end up with a great loss. To avoid such situations, we should always get our business insured. It is a good option to save money as it is a sure proof wat to protect ourselves against the unanticipated damages and to maintain our peace of mind.
There are many options available to choose from which insurance company we shall get insured. It is advisable to do enough research about the company’s previous records and reviews by people. You should purchase all your necessary insurance from a single company. The most common insurance types are covered by the business owner’s policies. When you are starting out, read all the documents carefully and carry out a risk-management audit to identify the potential damage cost and liabilities.
With small businesses, it is advisable to look for options. Here are a few types of insurance you should have for your small business:
Our property where we have set up our business whether we own it or have rented it is most important to us and is our topmost priority. For that, you must have property insurance to cover any damages to your inventory, furniture, equipment, and indications from fire, theft, or storm. There may be conditions like acts of god-like flood or earthquakes and that may be covered in different policies.
Workers Compensation Insurance
To run any business you need to have the manpower and when they are working for you, it becomes your responsibility to take care of their well-being in those hours. Worker’s compensation insurance covers medical treatment, disability, and death benefits if your worker meets with an accident or loses their life during the working hours.
There are many people who have online businesses or run small scale business such as retail shops from home. A homeowner’s policy does not cover large commercial property insurance but only is for the equipment and inventory for a home-based business. It is very important for businesses like tiffin businesses and artisans business.
Business Interruption Insurance
After being hit by this pandemic, COVID, where our shops were shut down and we were not able to carry out any businesses, we are so unsure what is going to be the next calamity. In case of such an interruption of regular work, it is necessary to have our loss covered. In business interruption insurance, lost income due to unforeseen occurrences is compensated for those businesses that operate from a fixed location like shops or stores.
Professional Liability Insurance
When you have people working for you, you cannot be sure of foolproof work as there might be negligence or if they fail to perform the duty which can be big or small but can lead to irreversible mistakes that turn to damage. You as a business person or organization can cover these types of claims under professional liability insurance or error and omission insurance.
Product Liability Insurance
There are many small-scale businesses that have startups related to the manufacturing of products such as snacks, foods, artifacts, cosmetics, boutiques, etc. Such businesses must purchase product liability insurance with coverage that is tailor-made for specific types of products manufactured by them. This is important because the customer may file a lawsuit against the owner of the company for the damages incurred to them by one of the products of your company even after all the security measures are taken. Product Liability insurance covers the claims and cost of these faulty products.
Commercial Auto Insurance
For loading, shifting, and delivery, commercial vehicles are required as our services are becoming more door-to-door. You must get your company vehicle insured so that you can claim liability in case the vehicle meets an accident. The company should insure against the third party injury along with commercial auto insurance that covers damages to the vehicle. Such insurances also cover the vehicle used by delivery personnel who is carrying the company’s goods and services.
General Liability Insurance
However or how much you trust and confidence you have over your team and your products, you must have general liability insurance as it provides the defense and covers the damages in case the product manufactured, an employee of your company or their services cause or are claimed to have caused harm or injury to a third party.
In a world where everyone is trying to earn many at a fast pace, you have to be careful against the unfair practices adopted by people. The crime insurance protects your company from the loss of money, security, inventory, or other properties resulting from fraud events or phishing. It provides coverage against the direct loss from any fraudulent or dishonest act committed by your employee or any third party.
Those small scale businesses who have set up their inventories in a different location in a rented place must purchase the Renter’s insurance as provides coverage against the damage to the physical property or personal injury within a property.
Data Breach Insurance
The companies who have data stored related to the non-public information or sensitive data of their employees or client in their servers or computers must consider opting for this insurance. The loss of these data files can result in a data breach and the company or owner might be slapped with the lawsuit. By getting the data breach insurance, you can protect yourself against damages or costs incurred by the data breach situation.
Directors and Officers Insurance
There are many small scale startups that are opened in partnerships. It is possible that a decision by one of the partners or board members may affect the company’s profitability and they are filed with a lawsuit. If such a situation occurs, the loss or damages are covered by directors and officers insurance.
Business Income Insurance
You can never foresee accidents like fire, typhoons, theft, etc and the income lost due to them is irreplaceable. Business income insurance helps to replace lost items by such events and cover other losses caused by them. If your business has to be shut down because of certain events, this insurance helps you pay for the lost revenues.
Intellectual Property Insurance
Most of the businesses run nowadays have extremely innovative ideas behind their success. The intellectual property insurance covers these businesses for the legal cost associated with pursuing infringement or theft of intellectual property by your employee or the third party.
Running a business is not easy and involves a lot of hard work. When you work tirelessly to make your business stand tall, you should be aware of the business owner’s policy that includes different types of insurances that you might need as a business owner. It includes most of the above insurances and comes in a package. You can also customize your Business Owner’s Policy.
Make sure your business is insured as it is heartbreaking to see your hard work going in doom because of the factors you cannot control. So be prepared!