No matter what kind of small business you run, your business is liable to damages caused to a third party. Owning a business makes you vulnerable to several types of liabilities, and you must know and understand them all to help protect your business against them. The risks range from body injuries to property destruction, among many others. Because of that, you must have the right kinds of insurance to secure your business against such misfortunes. The following liabilities are some of the most likely that you’ll run into when you run a contracting business.
People working in your company, walking through your facility, or passing by could be injured while on your premises. You must, therefore, be keen on the type of insurance you purchase, ensuring that it covers such costs. While you should have this insurance no matter what, you can lower your premiums and reduce the chances of having to use the insurance by making sure your facility and equipment are in good repair.
A workers’ compensation insurance is essential for every business. In fact, in most cases, it is legally mandated. It covers workers against injuries and illnesses received at work, and it helps cover employees’ medical expenses and lost wages. However, it also helps protect you as the employer. Employees who accept workers’ compensation benefits when they are unable to work waive the ability to sue their employer. This means that you can avoid a costly legal suit against your business.
Commercial property insurance coverage helps cover property destruction caused by a third party or by natural disasters or storms. Small business owners must not overlook the benefits of property damage insurance. Even small areas of damage can quickly end up costing your business tens of thousands of dollars, which could set your business back significantly. Even if most of your contracting business is done off site, it’s important to have coverage for any premises you have. This type of policy will often be bundled together with general liability coverage and other types of coverage into one policy.
As a contractor, you likely have a van, truck, or similar vehicle that stores your equipment and gets you to your clients. If this vehicle is owned by your business, you need to have commercial vehicle insurance for it. Most personal insurance policies won’t cover vehicles that are being used for business purposes. Additionally, commercial policies will usually cover more damage. Usually, the policy will still allow you to use the vehicle for personal use.
Companies that handle data are at a high risk of suffering cyber-attacks. If you own such a contracting business, you must be on alert. There are many things you can do to safeguard your data from hackers and other malicious programs. However, if hackers do breach your defences, you should be prepared with cyber-risk insurance coverage. It helps you mitigate the hefty expenses that come with the loss of valuable data.
As a business owner, safety comes first. Many of the risks you will face are unpredictable. They may involve bodily injuries or damage to property and products. However, by being prepared with the right insurance, you can help mitigate the damage done to your small contracting business.
Bio: Anita is a freelance writer from Denver, CO. She studied at Colorado State University, and now writes articles about health, business, family and finance. A mother of two, she enjoys traveling with her family whenever she isn’t writing. You can follow her on Twitter @anitaginsburg.