Insurance Considerations for Business Owners

With so many different facets of your business to think about, the last thing that you need to concern yourself with is worrying about what happens when things go wrong. No business owner, however, is immune from making mistakes or becoming the victim of circumstances beyond their own control.

With the air of uncertainty that surrounds business ownership,  it’s imperative to take out the right kind of insurance. And with insurance available for every conceivable eventuality, it can be difficult to know what types of insurance are necessary and which types are superfluous.

With this in mind, we’ve put together a list of the most important insurance considerations for business owners.

General liability insurance

General liability insurance is the foundation stone on which a properly insured business is built; it’s an absolutely essential purchase for a business owner of any size.

General liability insurance covers a vast swath of potential scenarios, but its basic premise is that it covers you if: you; those in your employ; or your products and services, cause bodily damage, or property damage to a third part claimant.

General liability insurance covers all manner of costs, including medical expenses, the cost of defending lawsuits, and court costs.

Product and professional liability insurance

If you own a company which manufactures a product, whether you then sell it directly or sell it wholesale to a retailer, you are responsible for its safety. Product liability insurance, therefore, is an important purchase, as it protects against financial loss, which results from injuries caused by a defective product.

If, however, you are running a service-based firm, it is imperative to invest in the requisite sort of professional liability insurance, which covers you against lawsuits pertaining to malpractice, human error, and negligence.

Property insurance

Property insurance covers your business for damage to your commercial property and the equipment which is contained inside, caused by fire, smoke, wind, and vandalism. While physical items, such as computers, office equipment and inventory are all covered, it is also possible to purchase property insurance which covers loss of earnings, as a result of being unable to operate as normal because of the damage.

Worker’s compensation

Worker’s compensation insurance is seen by many as an optional extra, as many of the areas that it covers have a modicum of coverage under general liability insurance.

The aspect of worker’s compensation insurance that is most attractive, however, is that it protects you, the business owner, from being sued by an employee.

Medical Claims can be an expensive and drawn-out affair, which can cause much unnecessary stress and financial strain. With worker’s compensation insurance, however, employees are guaranteed wage replacement and medical benefits, if they are injured at work, which they receive in return for giving up the right to sue their employer when an accident occurs.

If, therefore, your workers operate in a high risk environment, such as a warehouse, it may be worth considering.

Business owner’s policy

If you’re still a little confused about what types of insurance are necessary and which aren’t, as well as what each policy type covers you for, it could be worth considering purchasing a business owner’s policy (BOP).

BOP’s give you all the insurance policies that you require, but are arranged through one provider. BOP packages can also be tailored to suit your specific requirements, offering a one-stop solution to your insurance needs

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