What Should Your Business Insurance Cover?
Business insurance goes beyond fulfilling the requirement of some states to let people run their businesses. It is also like a security blanket to help pay for costs in case of an untoward incident to ensure you do not strain your operations, minimizing the impact of a setback.
That’s why you don’t get just about any policy offered to you. Instead, the wise move is to make consultations on the type of coverage available. Understanding insurance options will help you find the best, most suitable policy for your business model.
Here are some of the non-negotiables you should have in your business insurance, and then some.
- Business Owner’s Policy (BOP). One of the most popular coverages is a business owner’s policy, which includes general liability, property, and income coverages. It is a sought-after bundle because it could cover everything from property damage to legal fees, injuries, income interruptions, inventory replacement, and even advertising mistakes.
- Commercial Property Insurance. This is a customized package that may cover your building, goods, gear, and equipment. It comes in handy during machine breakdowns and calamity damages so that you can recover from the disruption. In addition, it will support repairs without putting your business on hold or causing more damage to your finances.
- Workers’ Compensation Insurance. Most state laws require protecting employees. That makes workers’ compensation insurance a must-have, regardless of where your enterprise is. It covers the employees’ lost wages and medical expenses during aninjury at work. Also, it can help protect the business from losses if an employee files a lawsuit against you and files for a benefit or even retraining.
- Professional Liability Insurance. Business mistakes are costly and could impact your company’s finances. That’s why there is professional liability insurance to help cover financial losses due to accusations of negligence, misrepresentation, and other business errors. This coverage will also help pay for legal defense costs and whatever claim anyone might file against your business.
- Product Liability Insurance. This one is similar to professional liability insurance, but instead of coverage for the company’s overall performance, it pertains to retail and e-commerce products. It can help protect your business against claims for property damages and injuries supposedly imposed by a faulty product. It can also help cover the legal costs of coming to court to defend a defective product against a customer complaint.
There are various other business insurance policies you can take to protect your business and keep it from being affected, especially financially, due to an accident or an unforeseen situation.
It helps to review all your options to ensure your company is well covered against property damage or bodily injury claims, including any potential legal costs if the case reaches the court. You also need a thorough review of your business model to determine what you need exactly.
When it comes to business insurance policies, there is no one-size-fits-all model. Instead, what you must obtain should be properly tailored to meet your needs based on what you do.