4 Vital Types Of Insurance For Business Owners
As a business owner, you must always have one step ahead in the game. You have to think about the past, present, and future of your organization in everything that you do. Insurance is a practical way of preparing your business to survive the unknown and unthinkable. For example, what if something was to happen to one of the key people in your business? You might want to take out something called Keyman Insurance that can help protect the business should something like that happen.
Protect your investments, and educate yourself on the different facets of business insurance. Here are a few of the most vital types of insurance every business owner should consider.
Whether you own or rent your business space, you have to invest in property insurance. Of course, organizations that are strictly online have a bit different rules, but any brick and mortar operation needs property coverage.
Your property insurance policy typically covers any mechanical equipment, signage, or inventory you may have onsite should it be damaged in a fire, storm, or stolen. Property insurance generally does not cover events of mass destruction like flooding, earthquakes, and tornadoes.
Workers’ Compensation is a legal requirement pretty much anywhere in the United States, and it is well worth the investment. Accidents happen, and unfortunately, sometimes they happen in the workplace. Your employees are the heart and soul of your organization, and they deserve to feel safe.
When one of your employees is injured on your clock, you are responsible for making sure they are compensated. If you don’t have Workers’ Compensation insurance, you could get into a very nasty lawsuit should someone really get hurt.
Business Interruption Insurance
When a huge storm or catastrophic event occurs, there can be weeks, months, or even years before your business is able to open its doors again. The lost income during the downtime can be somewhat recovered if you have business interruption insurance.
Acquiring business interruption insurance can save you and your family from a very costly undertaking should something terrible happen to your business. Don’t take the chance of losing everything, and take the necessary steps now to protect your future.
Product Liability Insurance
If you own a business that manufactures and sells a product of any sort, you should probably invest in product liability insurance. Product liability insurance will financially provide for situations when your product fails.
Not everything that comes off your production line will be perfect, and sometimes people get injured from a malfunction with the product. Product liability insurance will make sure you are protected should a lawsuit arise from damaged caused by one of your products.
For example, it would have been excellent for Ford to have product liability insurance when they rolled the first model of the Pinto off the line. Instead, they paid out millions in settlements and reconstructions only to add one small piece of plastic.