Being an entrepreneur and starting your own business has always been a tough task. Because from the day one, an entrepreneur has to work while taking a lot of risks.
It is true that no business work without risk, however, there are some ways which can help to reduce the risk factor. While doing business, entrepreneurs have to take right insurance which would help them to protect their businesses.
Because one lawsuit or sudden bad event could be enough to crush out the entire business. Luckily, business has the wide range of insurance types which can protect them from these kinds of threats.
Check out the various insurance types that your business must have in place.
1. Property Insurance
Not only the property you own, the office where you are doing business and also for all the office equipment, inventory or tools you should have the property insurance.
These all are the assets of your company and all of them must be insured. Having the property insurance will protect your business property and all the business assets in case of fire, theft, damage or any other natural disaster leading to the loss of any of these properties.
2. Professional Liability Insurance
Professional Liability Insurance is also known as the Errors and Omissions Insurance. If you fail to perform well enough in the business and it leads to the great loss, or if it is done due to the improperly rendering professional services, then this policy helps to provide compensation for such losses.
So, professional Liability Insurance helps you to play on the safe side, and it allows you to take risks up to some amount.
3. Vehicle Insurance
Company vehicles should be fully insured as it will help to safeguard business against liability if an accident occurs. The policies should be made such that it should at least ensure the third party injury.
The high cost of insurances are cutting down the hefty amount from the pockets of consumers, The Zebra, explains about the various insurance policies and how the consumers can get benefit from them.
Just keep in mind that, if the employees drive their own vehicle than your company should have non-owned auto liability to protect the company in case the employee doesn’t have the insurance coverage.
4. Product Liability Insurance
If you are the manufacturer of the product you sell to the market (doesn’t matter offline or online), then you must have the product liability insurance. You have to make sure that no harm or damage should be done to any of your consumers while using your products otherwise it could give rise to the lawsuit against your business.
Here, the product liability insurance works it helps to protect business and helps in the coverage if anyone got harmed using your products. Therefore, you need to give liability insurance, depending upon the type of product in which you deal in.
5. Business Owner Policy
According to the Investopedia, Business Owner Policy or BOP is an insurance policy that assembles the basic coverages required by the business owner in one bundle. It is usually sold at a low cost than that of the cost of individual coverages.
It will include the business interruption insurance, property insurance, vehicle coverage, liability and crime insurance. You can alter the insurance packages from the BOP according to the requirements of your business. For the business owners, it will save a lot of money.
6. Worker’s Compensation
When any of your employees got injured during the working hours, the worker’s compensation provides insurance to them and in exchange, they have to give their rights to sue his employer.
From the business perspective, it is important to measure which should be taken to every businessman and they should provide worker’s compensation to them because it will protect the company from legal complications.
7. Data Breach
Data Breaching is often done and is used to file a complaint against the company by the employees or clients. If the company fails to protect the sensitive information about their employees or clients, then they can file the lawsuit against the company.
This is often done either electronically or from the paper file, therefore, if the company has the Data Breach Policy, it will provide great help against the loss.
8. Business Interruption Insurance
During the disaster or any natural calamity, your business’s operations get interrupted. Because your employees won’t be able to work in the office space and no activities would be done in that time. This will lead to huge loss of income to your business and your company’s delivery time and goals will also be affected.
So to compensate that, Business Interruption Insurance helps business for its lost income during these events. Keep in mind that, it is only applicable to the companies who have the physical location or place. Know more about this insurance policy here.