If you run a business, you must ensure you have the right type of insurance. Every business needs a different kind of insurance, which can complicate things. However, this article should help you understand what insurance you need and how it can help you.
General Liability Insurance
Every business requires general liability insurance. This is the case even if your business is run from your home. Insurance such as this provides you with damages if your employees or your services or products are thought to have caused property damage or injury to a third party.
Let’s imagine that you’re a gardener and you visit people’s homes. Your job today is to chop down a tree, and you plan to undertake the work as safely as possible. However, when you’re chopping the tree down, it falls against a window and breaks it. If you have general liability insurance, you should be covered for the cost of a new window. You’ll have to pay for repairs if you don’t have the right insurance.
Commercial Auto Insurance
This type of insurance will help to protect any vehicles that you have. These vehicles will need to carry your equipment, products, or employees. You can ensure a wide range of cars against damage and accidents. You’ll need non-owned auto liability if you do not have cars as part of your business but your employees drive their vehicles as part of their work.
Let’s imagine you have a building where you run your business. You will likely store your computers, equipment, and tools there. Commercial protects against theft, vandalism, fire, and smoke damage. It would help to consider taking out loss of earnings insurance if you can’t operate while the damage is being repaired.
Professional Liability Insurance
Professional liability insurance can help protect against damages if you fail to render professional services. This is the type of insurance that accountants, lawyers, consultants, real estate agents, and hair salons have. This type of insurance is not affected by your general liability insurance.
You must take out worker’s compensation if you employ anyone to work for you. This type of insurance helps cover your employees if they’re injured. If they apply for worker’s compensation, your employees could be substituted for their medical bills and any earnings loss.
This type of insurance can also provide you with the cover because it can help protect you from legal issues. You must take out this type of insurance if you have any W2 employees. Failure to have this insurance could result in penalties.
Why You Need the Right Insurance
While you might not want to pay out money to insurance companies every month, you must have the right insurance. This is because you could be protected should something go wrong. Let’s imagine that your business premises are flooded. If you have the right insurance, you can pay for the repairs to your property. If you have a loss of earnings insurance, you could be compensated while your business isn’t operating.
Some states require you to have certain types of insurance. You could also face penalties if you don’t take out the required insurance. Buying the right insurance is a relatively easy process; finding the money to pay for damages to your property isn’t easy at all. Take out the right insurance today so you have peace of mind.