Business insurance is a must for every company, regardless of size or industry. Insurance will protect your business against risks and unexpected costs. When you take out insurance, you can have peace of mind knowing that your company finances are secure.
There are several different types of business insurance. Choosing the best insurance coverage for your company can be confusing and overwhelming. To make things easier, here are four types of insurance every business needs:
1. General liability insurance
General liability insurance is a must for every business. This type of insurance will protect your business from claims related to property damage or bodily injury. For instance, if an employee or visitor has an accident and is injured while working or visiting your facility. According to The National Safety Council, “the average cost of workplace injuries is $171 billion each year.” This is why it is so important for companies to take out general liability insurance.
2. Property insurance
Property insurance covers damage to your building as well as loss, damage, or theft of other assets like equipment and inventory. Without property insurance, you would be liable to cover the cost of property damage or loss due to fire, floods, or theft.
You should apply for property insurance regardless of whether you rent or own your business facility. According to experts at insureon.com: “Landlords often request proof of commercial property coverage, and lenders usually require commercial property insurance for the life of the mortgage.”
3. Worker’s compensation insurance
You should add worker’s compensation insurance to your business insurance policy as soon as you hire your first employee. Worker’s compensation insurance will cover things like medical treatment and disability benefits if an employee is injured during their employment. You should take out this type of insurance even if your employees are doing low-risk activities e.g. working in an office.
You should also consider taking our company health insurance so that your employees have access to quality health services and treatment if they ever need it. You can search for health insurance quotes online and find the best group deals for your company.
4. Company vehicle insurance
If your business uses vehicles, then you will need to take out company vehicle insurance. This will cover you if you or an employee is involved in a road traffic accident while using a company car or traveling for business.
If your employees use their own cars for business, they should add business coverage to their personal vehicle insurance policies. This will cover them if they are involved in an accident while traveling for business purposes.
Conclusion
These are some insurance policies you should consider taking out to protect your business and finances. The insurance you need will depend on several factors, such as your specific operations and the size of your business. You should assess the risks in your company and take out appropriate insurance policies to protect your business against unexpected costs, as this will ensure that you won’t suddenly lose large portions of cash.
