The Different Types of Dependable Insurance for Small Business Owners
Dan Levenson July 01, 2014
Dependable insurance for small business owners comes in many types and configurations. Their sheer variety might overwhelm anyone, especially an inexperienced entrepreneur. However, this short excerpt from an article on Confused.com stresses one good-to-know point about choosing from a wealth of choices:
“Thankfully, choosing the correct insurance products to suit your company’s needs is actually quite straightforward and largely depends on what type of business you operate, how large it is and what sort of assets you need to protect.”
To guide any entrepreneur looking to choose a specific insurance policy, here are a few of the most common choices explained:
General liability– Every type of business, whether office or home-based, needs to have liability insurance. Having such provides adequate defense from situations wherein either the owner, his/her employees, or the products/services being offered cause (or are alleged to have caused) bodily harm or property damage to any party.
Commercial property– This type of policy covers everything related to the loss and damage of company property due to a variety of events, such as natural and man-made disasters, or civil unrest. The definition of property is quite broad, therefore it covers a lot– lost income, business interruption, buildings, computers, and company papers to name a few.
Product liability– Companies that manufacture, distribute, wholesale, and retail a product can be held liable for its safety. This type of policy protects a company against financial loss as a result of defective products that cause injury or bodily harm. The amount of insurance a business owner should purchase heavily depends on which type of products his/her company sells or manufactures. For instance, a clothing store would have far less risks to mitigate as opposed to a pharmaceutical company.
Worker’s compensation– One of the most important policies out there, this typically provides insurance to employees who get injured on the job. It usually provides wage replacement and medical benefits to any affected individual, but there’s a catch: once an employee agrees to be compensated, he/she gives up the rights to sue the employer for the incident. This policy type basically acts as a wall to protect a company from various legal complications, should the worst surface at any given time.
Data breach– Often offered by a reliable technology insurance company like Insure Your Company, this type of policy covers the pitfalls brought about by the unnecessary disclosure of sensitive, non-public data that the company holds.
Now that you’re aware of the different types of insurance policies, you should take the time to pick the right one for your business. Be sure to keep their unique traits in mind, and your business will never be caught unprepared.
(Source: What Kind of Insurance Does Your Small Business Require? Confused.com, June 8, 2012)