7 Types of Insurance Every Business Owner Should Know About
An entrepreneur’s business always faces some levels of risk. Just one natural disaster, traffic accident or catastrophic event could wipe you out. It is so important to have insurance protection in place. Here are seven types of insurance specifically designed to protect your business entity:
1. Property Insurance
Whether you own or space or rent space, every business should have property. This coverage protects equipment, inventory and even office furniture. But be aware that natural disasters like floods and earthquakes generally aren’t covered by these policies and you may need separate policies.
2. Errors and Omissions (E&O)
Errors and omissions insurance (or E&O for short) is professional liability insurance that covers a business against claims due to mistakes or failure to deliver the promised product or service. Because each industry has its own set of risks and concerns, there is no “one-size-fits-all” approach. Your coverage will need to tailor fit for your business.
3. Workers’ Compensation Insurance
Workers’ compensation insurance covers medical treatment, disability, and death benefits in the event one or more of your employees is/are injured or dies on the job. This coverage also protects against slip-and-fall injuries or medical conditions such as carpal tunnel syndrome.
4. Commercial Vehicle Insurance
If your company has vehicles (delivery vehicles, work vehicles, etc.) each vehicle needs liability insurance.
5. Home-based Business Insurance
Many businesses begin in someone’s home or garage, but homeowner’s policies don’t cover home-based businesses, or if they do, there are key limitations. If you operate a business out of your home, ask about extra insurance to cover your equipment and inventory.
6. Product Liability Insurance
If you manufacture products, you need product liability insurance. Because each industry has its own set of risks and concerns, there is no “one-size-fits-all” approach. Your coverage will need to tailor fit for your business.
7. Business Interruption Insurance
If a disaster or catastrophe strikes your business, and operations are interrupted, you may see your revenue dry up. Business interruption insurance provides income replacement cash during such events.
By having business interruption insurance in place, you can avoid major losses and make it through what would otherwise be a catastrophic event. Check with your insurance agent to find out what options are available for your type of business and get those plans in place as soon as possible!
Don’t live with the risk. Make sure that your business coverage is correct and priced right. Let’s talk about your needs and make sure you’ve got the protection your business needs.
If you have additional questions about the right kind of insurance for your business, call us! We’ll be happy to help you understand your options.