Insurance policies are a must-have for businesses regardless of the scale of operation because they cover costs resulting from property damage and liability claims. As a business owner, you will be forced to pay the legal claims and damages out-of-pocket, which can financially cripple the business. Insurance providers offer policies to businesses for every conceivable risk that they might encounter in their day-to-day operations. Based on your business risks, you should pick the right policies to protect your business financially. Nonetheless, you should always look into these insurance policies because your business will be protected from costly damages and legal claims.
General Liability Insurance
General liability insurance protects businesses from financial burdens resulting from accidents, injuries, and negligence claims. A general liability insurance policy will also protect your business from the high costs of lawsuits and make your business eligible for contracts and leases. The need for general liability insurance is emphasized if your business interacts directly with customers because the policy will ensure that your business remains financially stable during a customer lawsuit. Even though your state laws might not mandate general liability insurance, you will need it to secure office space, get a mortgage, or enter into contracts with your clients.
Cyber Liability Insurance
Cybersecurity threats, such as phishing, data breaches, malware, and ransomware, remain as serious challenges to businesses in the technological era. A cybersecurity attack results in financial loss, information disruption, and system failure. Cyber liability insurance is a must-have in the digital era as it protects businesses from financial losses that might result from a cyber-attack incident. Your business will have access to an incident manager who will help recover. If your business faces the threat of data breaches and cyber extortion, you should invest in a cyber liability insurance policy.
Commercial Property Insurance
A commercial property insurance policy is tailored to protect a business from losses associated with company property damage. A business is likely to suffer property damage because of events such as fire, hail storms, vandalism, civil disobedience, earthquakes, flood, and wind. In addition, a commercial property insurance policy will protect your business against losses related to inventory, supplies, and equipment damage. However, before investing in a commercial property insurance policy, you should assess your business risk to find a policy that suits your needs.
Workers’ Compensation Insurance
Businesses are mandated to have workers’ compensation insurance after hiring their first employee. A workers’ compensation insurance provides financial benefits to your employees when they sustain injuries or get sick because of work-related causes. The insurance policy also offers disability benefits, missed wage replacement, and death benefits. Failing to invest in a workers’ compensation insurance policy might result in penalties and criminal charges.
Insurance policies are tools that protect businesses from unexpected financial damages. As a business owner, you need to have the right insurance policies that cover all the risks associated with your day-to-day operations.
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.
