Business insurance should never be considered as an expense or a luxury. Although insuring your business can be expensive, it is an expense that every business should include, irrespective of its size or the industry it is operating in.
Insuring against catastrophic lossHaving your commercial facility insured will protect your business from any kind of catastrophic loss like fires, floods, tornadoes and so on. Catastrophic loss can spell the end for your business if your business is not insured. If you have your business insured, then loss and closure is temporary. Businesses should also consider having a business interruption insurance. This will ensure that they have a continued cash flow for the duration of a closure due to a natural disaster.
You should consider these types of insurance to keep your business insured:
- Property insurance: Property insurance will cover for the property and buildings owned by your business. Your business facility will be insured in the the event of destruction or damage due to things like fire and other perils.
- Contents insurance: This will cover all your assets that you store at your business premises. In case you are leasing the space for your business, then the owner of the property probably has property insurance. Even with leased property you are likely responsible for your own contents insurance. If you run your business out of your home, you will likely need separate contents insurance for your business assets.
- Business interruption insurance: Business interruption insurance will cover your loss of earnings until you are back in business.
- Vehicle insurance: This will insure any vehicles that your business owns. If you use personal vehicles for business purposes, make this known to your insurance company.
Insuring against liabilityAccidents can occur at any time and it is always pays to be prepared for such scenarios. For instance, if a customer slips and falls while on your business premises, if your product’s defect leads to injuries to a customer or if you are not prepared with insurance then this could lead to huge monetary loss for you. Having an insurance that deals with business liability will help you cover accidents occurring on business premises, defective products and other mishaps. Certain kinds of insurance will help you limit your liability.
- General Liability: An injury to clients or employees on your business premises will be covered by this insurance.
- Product liability: This provides protection in the event where your products are defective or are responsible for causing serious harm to those using or operating it.
- Professional liability insurance: This provides you with protection if you are sued by a client for errors, omissions or negligence, when performing professional services
TheftTheft and robberies can lead to huge losses in terms of money as well as time. Having your expensive machinery stolen will lead to temporary closure for your business. Having a replacement insurance will protect your business if your equipment is stolen and will help you replace missing items. A replacement insurance will also allow you to pay for repairs for the damage caused by the invasion.
It is essential to get the correct business insurance for your business. A great insurance plan will provide you with peace of mind. To discuss more about business insurance options, contact an insurance representative. They can help you find or develop an insurance plan that is right for your business.