Insurance for Your Business – What’s Covered and What’s Not
No matter what kind of business you have, you need to insure it. Assets related to your business like office space, vehicles, electronic appliances and other equipment must be covered by some form of insurance to ensure that you’re able to handle losses well. Also, you need to be covered against potential risks. There are too many businesses that think insurance isn’t important, until something happens and they don’t have the money to deal with it. Don’t be one of them!
There are different types of insurance that cover different things related to your business. Which ones you need will depend on your business and its particulars. For this, you can get advice from an insurance broker who is familiar with your type of business. However, certain basic types of insurance apply to all companies.
For property and earnings
Insuring your assets and earnings is important for handling disasters and emergencies.
- Property insurance
In case of disasters like hurricanes or fires, the buildings or other property owned by your business will be covered.
- Business interruption insurance
If a disaster occurs, you’ll have to shut down operations temporarily. Business interruption insurance will cover you for the incurred loss of earnings.
- Contents insurance
Any assets (e.g. computers and copy machines) related to your business can be covered under contents insurance. Whether you are leasing office space, or working from home, you should consider getting your business assets covered.
- Vehicle insurance
In case of accidents or major repairs, your automobiles need to be insured.
Against litigation - Liability Insurance
It’s inevitable – mistakes are made, harming your employees and customers. The following types of insurance can make sure you don’t get sucked out in legal battles.
- Product liability
This is one of the most important covers you have to get. In the event that your products or services cause harm to your customers, product liability insurance will make sure you have the cash to deal with the trouble.
- Professional liability
You could be taken to court by clients for a mistake. Even if it was unintended, the customer / client has the right to litigate. Protect yourself against heavy losses by getting professional liability insurance.
- General liability
This covers any injuries and harms that you and your employees might suffer in your business premises.
Against client’s failure to pay - Accounts Receivable Insurance
Accounts receivable insurance is also known as credit insurance. If it so happens that a client fails to pay you for your company’s services, it’ll be next to impossible figuring out how to pay your employees, suppliers and other personnel. Credit insurance will cover you if such a thing happens, till you get back on your feet.
For the people in your organisation
You are indispensable for your business, and so are your business partners and key employees. Your core activities will be severely hampered if one of them suffers from an accident or sickness.
- Life insurance
If you are the sole proprietor of your business, you’re personally responsible for all its debts. You need to protect your family in case something happens to you.
- Partnership insurance or buy-sell insurance
In the event of a partner’s death, this kind of cover will allow to buy all the shares and continue your business.
Take note that all these types of insurance cover specific things. For example, you might be under the impression that property insurance also covers your assets, but you need contents insurance for that. Similarly, general liability only covers you and your employees. You will need product liability insurance for protection against customer complaints.
Make sure you consider all the points and get all the policies you need. Also, learn how to read your insurance policy to understand the premiums and policy limits.
If you are the victim of insurance fraud, or your company is being sued, get the best lawyers in Edmonton to win your case.
Source: Ken Teegardin via Flickr