The two types of insurance mentioned above (Motor Vehicle Insurance and Workers Compensation Insurance) are essential for running a business. In addition to these, there are other types that you will encounter and consider as you go along. We categorize each company's protection needs into three areas, which are:
Assets and revenue
Let's take a look at how you can protect your assets and income through insurance. In this category, your goal is to make sure that all assets are safe and covered in the event of loss, theft, or damage. The coverage you need will depend on what you want to protect, your business environment and your transactions.
Suppose you work in an office building. In that case, you may want to take out building and content insurance, which includes machinery, computers, inventory, and raw materials. This insurance may also include leased property, which you are obliged to insure under the contract.
Another type of insurance that protects your assets and income is cyber liability insurance. This is especially important with small businesses that use computers to send and receive electronic data. Most of which contains sensitive information, such as tax records, sales estimates, and contingency plans that are important to your company. If those pieces of information are lost, stolen, or damaged due to security breaches, recovery is often difficult and expensive.
In some cases, data breaches can, unfortunately, trigger claims or litigation. Some data may include personal information, such as health records, social security, and credit card numbers. It is advisable that you protect your business against these claims, which can be very costly. That's why you need cyber insurance.
Other types of coverage that can help secure your company's assets and revenue are:
- Breaking glass: Replacing large, custom-built buildings is expensive. If the glass breaks, it can be dangerous to your customers, staff, insiders and even your products. Thieves can also see this as an opportunity to do their illegal work. Glass shatter insurance can protect you in this case.
- Equipment failure: You need funds to repair and replace broken machinery. Equipment malfunction insurance helps you financially when it comes time to take care of equipment damaged by a mechanical or electrical malfunction.
- Commercial Vehicle: Do you move employees or goods from one place to another? These vehicles can break down, disrupting your work and costing you a lot of money. Commercial Vehicle Insurance Corps can help you during these times.
- Fraud: Fraudulent activities can have a significant impact on your income. Fraud insurance protects you from financial losses caused by fraud committed by your employees or a third party.
- Theft: Theft coverage protects against theft of money, goods, stocks, and others that are too expensive to replace. It usually covers both internal and external thefts.
Some incidents can even lead to stalled operations. Although temporary, they can have devastating effects, especially for small businesses. That's why getting Business Interruption Insurance can be helpful in dealing with unforeseen circumstances that may interfere with your day-to-day business activities.
Responsibility
Your business activities can injure someone or damage property. For this reason, you must have liability insurance, which helps reduce the impact of a negative event. If you are found liable, it covers legal costs and required payments to the injured party.
Some common types of covers include:
- Public Liability: All businesses must have public liability insurance. Whether you work in the office or at home, it is important that you cover the potential liability claimed by the third party. For example, customers may be injured while providing service to your business. If you're working on a client's property and breaking a window, it's easier to fix when you have insurance.
- Professional Compensation: If your business provides advice or service, professional compensation insurance is mandatory. This is insurance that every professional should be protected from liability for damages. Legal battles are very expensive these days, but you have to defend yourself and your business reputation. With Professional Indemnity Insurance, you are protected from claims due to an act, breach of duty, or failure to perform a service.
- Product Liability: If you sell products to your customers, you need product liability insurance. This is useful for any small business that makes, supplies or sells products. Typically, claims are made because of your product, which may cause injury to a person or property. Claims can greatly affect your work, causing disruption if you don't handle them quickly.
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All three types of liability insurance are required. Legal battles can escalate beyond your business and consumers. Whether the claim was caused by an injury caused by a service, product, or advice, it could have a ripple effect across the company. Therefore, the process can be long, complicated and certainly expensive..
