Know These Kinds of Business Insurance and Their Purpose
Business insurance is one matter in having a business that you will be advised to have no matter what the size or nature of your business is. When looking for a new business insurance or reviewing your present one, you have to take into consideration some matters with regards to your business. Note that different insurance requirements are needed for every kind of business. This means that a firm offering services may need a different kind of insurance from that of a company manufacturing physical goods, and for each scenario would come different kinds of insurance to be considered.
The first kind of insurance is for your employees which is a workers’ compensation insurance, a requirement by law in almost every state. Through this type of insurance, the employee can be provided coverage for the medical costs and part of lost wages as he or she cannot work due to injury or illness while working in the premise of the company, for example slips and falls.
The laws about workers’ compensation will differ depending on the location of your firm, and so, it is better to work with an insurance professional who will help you get the necessary coverage fit for your kind of business.
Designed to protect the owner and the business is the next type of business insurance which is the general liability insurance, which is a protection against different claims of accidents, injuries and negligence. With this insurance, it can help the business owners to pay for several things like faulty products, legal costs, medical expenses, property damage, libel and slander. The circumstance of being sued is always a probability even if a company does not expect or want it, and so to protect the business from these types of situations, it is advisable to have the protection.
The next business insurance that a service-based company is advised to have is the professional liability insurance which also known as “Errors and Omissions Insurance”, or also known as “Malpractice Insurance.” This kind of insurance protects the business from lawsuits regarding alleged negligence in the provision of professional services, in making mistakes or omissions of services, or in giving bad quality of work.
The commercial property insurance is another kind of business insurance needed by companies, especially for those small firms which could have difficulty in replacing equipments when damage or destruction incidents will happen. This type of insurance covers a company’s properties like buildings, computers, inventory, supplies and equipment, and the policies can be of two types, which are the “all risk” policies and the “peril-specific” policies.
As your next important business insurance comes life insurance, which would attract executives and good performing employees to be with your company.