Business insurance is a broad term used to describe the many different insurance covers a business owner must obtain. While the different insurances can be acquired as separate policies, some insurance companies may combine them under one 'blanket' business insurance policy, to make the process more convenient for both the insurer and the insured. The insurance you require will depend largely upon the type of business you own. Some of the insurances you may need are as follows:
Property & Contents Insurance
This insurance will cover your place of business, equipment and building contents. Whether you own your business premises or are renting you'll need to have property insurance. Most office buildings require tenants to have business insurance that includes property and contents insurance, so even if you are renting short term office space business insurance is a must. Even if you run your business from home, you will still need an insurance policy for business contents and any building specifically used for business purposes. You may assume that your household insurance policy will be sufficient, but that is not the case, and you will find your business financially unprotected, should a claim occur.
General Liability Insurance
This insurance will protect your business financially, should your business be found liable to a third party. There are many liability issues surrounding businesses, and no matter how well you manage your business, a liability claim may still arise. Negligence causing injury to a customer or employee is a common issue in business, and a good general liability insurance policy will protect you financially, should this type of claim occur.
Product Liability Insurance
If you are in the business of manufacturing, assembling and/or selling products, you should ensure your business has product liability insurance. This may be included in your general liability policy, but this is not always the case. Therefore, it is important to ensure this type of insurance in in place, either in a combined policy or separately.
Professional Liability Insurance
If you are a professional such as an architect, realtor or lawyer etc., it may be necessary to obtain professional liability insurance. This insurance varies, depending on the business type. An important aspect of professional liability cover is errors and omissions insurance, as this will cover your business against many aspects of human error. Malpractice insurance is an essential aspect of professional liability cover for those in the medical field. To assess if you require professional liability insurance, speak with an experienced insurance agent.
Workers' Compensation Insurance & Employee Insurance
If you employ any number of people to work for you, then you should obtain workers' compensation insurance. Similarly, it makes good business sense to acquire employee insurance to offer benefits, in order to keep good employees working for your business. If you do not offer benefits, you may find the turnover of workers in your business at a very high percentage. By offering benefits, your employees are more likely to stay working for you, thus saving your business money on hiring and training new staff.
Business Interruption Insurance
If your business is forced to close for a period of time, you will have no cash flow to protect you. This is where business interruption insurance can help. This type of policy will protect your business from loss of revenue, thus making it easier for you to live and for your business to recover once you are able to resume business as usual.
There are other types of insurance you may wish to obtain for your business, which are not essential but may benefit you in the long run. In order to asses exactly which types of insurance you need, speak with an experienced agent who specifically deals with insurance for various types of business.