Being aware of what might befall your business in the nearest future is next to impossible. Running a business can be challenging, and involves putting your own finances at risk. With some cash for your business financing coming not coming from you, it makes sense to manage risk, reduce uncertainty and protect your livelihood against uncertainties.
Business insurance can protect the equipment and machinery you need to run your business. It can as well ensure that you, your employees, and customers are insulated from business risks. Business insurance may also provide financial support, especially if your business is unable to operate following an unexpected event such as a fire or natural disaster.
Insurance companies provide a variety of policies that cover several sort of businesses. Though different types of businesses require different policies to protect their assets and to protect against legal liabilities. Before venturing, ensure you know the kind of insurance you need for your business.
Types of Business Insurance
The good thing about business insurance policies is that they can be changed and customized to suit your business needs. . You can choose from a wide range of insurance cover specifically tailored for business owners. Your insurance needs are bound to vary according to the industry, trade and type of business you are operating. There is definitely no one-size-fits-all insurance solution for all businesses. Some types of insurance needed by businesses include;
General Liability Insurance
Every business, even if home-based, especially a new startup, needs to have liability insurance. This insurance policy provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused bodily injury or probably property damage to a third party.
As a business owner who owns his building or have business personal property, including office equipment, computers, and inventory or tools you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc. Also, you may want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate as it normally does.
Life insurance is basically for protecting an individual against death. If you have life insurance, the insurer pays a certain amount of money to a beneficiary upon your death. You pay a premium in exchange for the payment of benefits to the beneficiary. This type of insurance is very important because it allows for peace of mind to employees. This is because your employees would know that their loved ones will not experience financial burden upon their death.
Commercial Auto Insurance
Commercial auto insurance protects your company’s vehicles. Vehicles that can be protected include vehicles that carry employees, products or equipment. With commercial auto insurance you can insure your work cars, SUVs, vans and trucks from damage and collisions. In cases where you do not have company vehicles for your business, but employees drive their own cars on company business you should have non-owned auto liability to protect the company in case the employee does not have insurance or has inadequate coverage.