Operating a business takes a great deal of patience and hard work. You have many responsibilities. You can take some pressure off yourself by having the right insurance coverage in place. Here is a look at some different insurance policies that can help you protect your business.
Once you open your business, you are immediately exposed to multiple risks. One incident in the workplace or mistake involving your customer can put everything you’ve worked for in jeopardy. Luckily, there are several types of insurance policies that you can purchase that will protect your business and prevent you from losing everything.
Professional Liability Coverage
Professional liability coverage also referred to as errors and omissions (E&O), protects your business by covering you against claims of negligence based on a service that you have performed. Even if you made an honest mistake, you may still be sued. That’s why professional liability insurance is an asset. You can adjust your policy based on the risks involved with operating a business in your industry.
In order to have a successful business, you need to hire skilled employees and provide them ample protection in case of a work-related mishap. Workers’ compensation protects your business while also allowing you to show how much you value your employees. It covers your business if an employee is injured in the workplace. The policy covers your injured employee’s medical treatment while also providing benefits if they become disabled or if they pass away. Even if your employees engage in low-risk work, workers’ compensation is still a good safety net to have in place.
Property insurance covers the building where you operate your business. Property insurance prevents you from starting over if your building is damaged due to a fire or serious weather. All of your equipment, inventory, and signage are also protected against any mishap. If you are operating your business in a region that is prone to natural disasters such as earthquakes, you can amend your policy to provide full coverage in the aftermath of a catastrophe.
Vehicle insurance protects any vehicles that you use to operate your business. You are covered if the vehicles are stolen or vandalized. A big part of vehicle insurance is liability protection if an accident happens. You are covered if your vehicle injures someone or causes damage to their property. Note that your employees can get their personal insurance coverage if they are using their own vehicles at work. The only exemption is if they are using their vehicle to deliver personal items for a fee (this includes delivery personnel as well).
Product Liability Insurance
If your business sells products, product liability coverage is essential. Even if you thoroughly analyze your manufacturing process to ensure there are no errors, something can still go wrong. A customer can sue you based on allegations that your faulty product caused damage. You can customize your product liability insurance based on the risks involved with using your products.
Business Interruption Insurance
Sometimes things happen that are beyond your control. If a natural disaster destroys your business assets, business interruption coverage replaces the lost income when your business is not able to function properly. If you rely on a physical location to complete tasks, business interruption insurance can compensate for the loss of income during a catastrophe.
Additional Coverage While Working from Home
If you own a small business, you may choose to operate periodically or full-time from home, at least in the initial phases. Even though this sounds secure, there are still risks involved. Your homeowners’ insurance policy will not cover any damage to your home-based business. If you spend a lot of time operating your business from your home, you need to purchase extra coverage to protect your essentials if something goes wrong.
Having adequate insurance coverage can help your business avoid significant financial losses in the future. If you have any questions regarding the type of coverage you need to protect your business and its employees, our experts at Weaver & Associates are here to assist you. Contact us today!