Insurance is an integral part of a business because it acts as a form of risk management. Business insurance reduces the financial losses of a company by transferring the risk to the insurance company. With an insurance cover, your business efficiency and continuation are assured. Your employees’ welfare is catered to as well. There are different aspects of insurance to understand as a first-time business owner. Below is a list of four of them.
Professional Liability Insurance
Professional liability insurance is also known as an error. Omission insurance protects you and your business against claims that may have resulted from performance failures or mistakes when offering professional services. This type of coverage differs from one industry to another, and understanding your niche will help you get the right policy. As a first-time business owner, you can get a variety of coverage with this insurance, such as actual negligence.
Workers Compensation Insurance
This is a type of insurance that protects employees against work exposure injuries. As a business owner, you have to handle this statutory obligation despite the size of your business. The workers’ compensation insurance covers the medical bills of an employee. It also includes death benefits when the employee dies or injured due to work exposure. A business must add this insurance policy even if your business operations are less risky.
Property insurance is a mandatory policy that a business should have. Whether you are leasing or own the property, you have to make sure it is covered. This policy covers furniture, equipment, inventory, and signage from theft, fire, storm, and other perils. It is advisable to take property insurance covering all risks compared to one that has named the danger to be covered.
Product Liability Insurance
For a manufacturing company, they need to have the product liability insurance to protect them against property damage and personal injury resulting from sold or supplied products from the business. With this type of liability, you have protection from the court or any other legal costs. No matter how safe your products are, it is essential to get product liability insurance because you never know the potential of your products going wrong.
When your business caters to these aspects of insurance, you will be safe to operate, knowing that you are protected from significant financial losses. Before choosing an insurance company, consider the types of coverage, they have to ensure you choose one that suits your business type.
Emma is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. Say hi on Twitter @EmmaSturgis2