If you own your own business, there are plenty of tasks you have–creating and producing your product, ordering supplies, marketing to customers, and paying payroll, among other things. Even though your time is precious and you likely have much to do, don’t overlook business insurance. Business insurance is the best way to protect your assets in the event of an accident or some other issue.
There are several types of business insurance you may want to consider:
Home-Based Business Insurance
If you work from home, you may just assume that your homeowner’s insurance policy may cover your business as well. However, this is not true, and you’ll likely need a rider added to your existing policy to cover your home-based business. This is only a start, though, as you may also need one or more of the following business insurance policies.
Professional Liability Insurance (also known as Errors and Omissions Insurance)
This insurance protects you in case of errors, negligence and mistakes when you are providing services. For physicians, for instance, this is also called malpractice insurance.
Product Liability Insurance
If you produce a physical product, you’ll likely need this insurance. It protects you and your company should your product have a defect that causes bodily injury or death. If you produce products for babies, for instance, you will need more product liability insurance than someone who produces blankets. You’ll need to decide the amount of risk your product poses because this directly translates to how much insurance you will need.
Commercial Property Insurance
If you no longer work from home and instead have a separate physical space for your business as well as equipment you use, you’ll likely need commercial property insurance. There are two types of commercial property insurance:
1. All-risks policies. This commercial property insurance protects you in the case of fire, theft, vandalism, and a variety of other issues that may arise.
2. Peril-specific policies. This policy protects you against events that are specific to the location where your business resides. For instance, if your business is situated close to the coast, you may opt for flood insurance as your peril-specific policy.
Commercial property insurance protects you and your business from physical damages as well as lost income, business money, and computers, to name a few.
General Liability Insurance
In the event of accidents, injuries or claims of negligence, general liability insurance will protect you and your business. If there is a judgement against you or a medical liability, for instance, this insurance policy will help cover the cost.
While insurance policies are not cheap, they afford you and your business valuable protection. As your business increases in worth and you have more to lose, having the right insurance in place becomes more and more important.
In the long run, paying for insurance policies will be cheaper than the alternative in the event your business is sued or needs to pay a liability judgment. Don’t wait too long to get the proper insurance coverage in place for your business.