Every company needs insurance, and if you’re a first-time business owner, it can be challenging to know where to get started. There are so many places offering unique plans and policies. The process is certainly overwhelming.
If you’re feeling a little lost, keep on reading.
Below we are going to take a look at five types of insurance your business may need.
When you’re starting a business, liability insurance is one of the first things you should look at. However, it’s important to remember that there are many types, which cover different things. Some of which include:
Public liability: This covers the cost of legal action if an individual is injured on your property. A typical example of this would be falling on a slippery service.
Product liability: Provides your business coverage if an individual is injured by your product or service. This could be due to a manufacturing, design, or label defect.
Cyber liability: Protects you from financial losses as a result of data breaches, generally involving sensitive and personal customer information.
Professional indemnity: This is taken out by a business that offers professional advice to its customers. It covers action against you in case an individual suffers a loss after following the advice.
Group Life Insurance
Offering benefits to your staff is essential, and one way to do that is with life insurance. Group policies show your team that you care and can even help retain those with outstanding talent.
Alternatively, you might also look into something like key person insurance, which provides coverage to a crucial member of the business. This could be a partner, founder, office manager, or top salesperson, for example.
Business Interruption Insurance
Business interruption insurance assists your company in the case of a natural disaster or catastrophic event. It can provide coverage to help with rebuilding and other ongoing costs such as outstanding invoices and staff wages. While you may think, “what are the chances of this happening to me” it’s always better to be prepared. One unexpected circumstance could lead to your business’s downfall.
Just like your home, it’s important that you have your workspace protected, whether it be a small office or a large building. Property insurance covers losses from theft and damage so that you don’t have to cope with such an enormous impact. If you want to make things easier, you might look at business insurance which generally comes as a package with everything included.
Lastly, if you own a business vehicle or fleet, the correct vehicle insurance is a must. Accidents can always happen, and you’ll want to have the coverage there to protect you and any of your employees. Make sure you shop around and look at different options. In some cases, a company will allow a fleet to be as small as two vehicles.
And that’s it! By reading through the above, you should now better understand the different types of insurance your business needs. However, there are other policies out there that can also be beneficial, so make sure to do your research. It all depends on the type of business and services you will be offering.