There are a lot of benefits to owning a business. You can do something you love and play by your own rules. Just as importantly, you have the ability to dictate your own success.
However, owning a business also entails small business risks. You are responsible for your products, your employees, and more. As such, you are more vulnerable to lawsuits and other legal issues.
Naturally, you need to educate yourself on the various types of business insurance. We can provide a little guidance. Keep reading for some of the most common types of business insurance that exist today.
Professional Liability Insurance
First, let’s talk about one of the most important types of business insurance. Professional liability insurance covers damages occurring on your property and damages caused by you or your employees.
For example, if someone slips and falls going up your stairs, professional liability insurance will cover the costs of the settlement, should the victim decide to pursue compensation. This policy also covers damages caused by contractors to a client’s home or possessions.
Check out the professional liability insurance provided by Soden insurance to learn more about this coverage.
Product Liability Insurance
If your company sells products, you need to invest in product liability insurance. If a consumer is injured by one of your products, this coverage should cover the costs of the lawsuit.
However, you should also work with an attorney to write up a disclaimer to avoid potential claims. Some products, like power tools, are inherently dangerous. A legal disclaimer should add a layer of protection for your company.
One of the most common types of business insurance is automotive coverage. This is necessary if you have fleet vehicles for your business. This is common for moving companies, service providers, taxi companies, etc.
Automotive insurance will protect your vehicles and employees in the event of an accident. Otherwise, you (as the business owner) would have to pay for the costs of car repairs and medical bills.
Property and Asset Insurance
Property insurance and asset insurance are vital types of insurance used to protect your business assets. In the event of a theft, fire, flood, or other natural disasters, this coverage will reimburse you for your losses.
If you choose to operate without property or asset insurance, you could lose everything. Essentially, you would have to restart your business from the ground up, without assistance.
Worker’s Compensation Insurance
Finally, responsible business ownership requires taking care of your employees. You should carry worker’s compensation insurance to support your staff financially if they are injured in the line of duty.
Electricians, roofers, construction workers, and other physical employees are more likely to be injured. However, even office-based jobs carry certain risks, such as headaches, chronic back pain, depression, and more.
Do You Know the Types of Business Insurance You Need?
If you just started a small business, make sure you have the appropriate types of business insurance moving forward. The right policies can literally save your company in times of need. Just as importantly, you need to invest in your company, your customers, and your employees.
For more valuable insight into business ownership, check out some of our other articles. You can find more content on marketing, cybersecurity risks, finances, and more. Our blog has tons of information created for readers like you.