Business owners should consider purchasing coverage for their enterprise to minimize out-of-pocket costs for damages and liability claims. Unexpected losses can occur anytime, pushing your business out of the market if you aren’t prepared for emergencies.
The following are the 5 types of insurance that you need to protect your business.
Employers’ Liability Insurance
All businesses with at least one employee are required to have employers’ liability insurance. This coverage aims to protect the employees against injuries and damages that occur during their work duties. Most employees look for companies that have this coverage before applying for work. Employers are required to display the insurance certificate where the employees can see it.
You may be exempt from getting this coverage if you have just one employee who owns fifty percent or more of the share capital. Sole traders and those who only employ family members to run their business are also exempt. Temporarily employed workers, known as temps or seasonal employees, are not exempted from this coverage.
Any business owner who fails to comply with this requirement will be fined a significant sum of money for all the days that the business operated without a suitable employers’ liability policy. The size of this fine maybe double the cost of coverage, so it is better not to default.
Public liability insurance is not required by law, but it will enable you to have sufficient coverage for visitors to your premises if anything happens to them. This policy will cover both the medical bills and the legal expenses incurred if you or your employees are sued for third-party bodily injuries or property damages. Depending on the type of business operations you carry out, having this policy may help you acquire more lucrative business deals. For instance, if you are in the construction industry, several contractors may require you to carry a public policy before entering into any contractual agreement with your business.
Your office, just like your home, should be protected against weather-related damages, burglary, and vandalism. Building insurance helps covers such devastating events. Your provider will consider the fixtures on the property, so having a high-risk installation can affect your premium cost. Find out if you need additional coverage for high-risk fixtures and assets that exceed the limit of your building insurance. Installing safety equipment and following precautions can significantly reduce your premium and qualify you for discounts.
Commercial Auto Insurance
Commercial auto insurance is different from regular auto insurance because it has a significantly higher coverage limit than personal car insurance. Vehicles used for heavy-duty purposes are at higher risk of damages, which could mean high out-of-pocket costs.
Industry-specific Insurance Policies
Some professions or trades require specific policies, so it is advisable to check your industry for policies necessary for your business. Also, ask your colleagues for good recommendations to ensure maximum coverage.
These are the five important insurance coverages you must have in place to protect your business. For assistance with all your insurance needs, contact the experts at Weaver & Associates in Arcadia, California today.