5 Types of Insurance Every Business Should Have
Before you open your business, it is imperative that you have the proper coverage. A single lawsuit or catastrophic event can easily wipe out a company before it has a chance to get off the ground.
That being said, there are many types of insurance out there, and some policies can be extraordinarily expensive. Therefore, it is critical that your company is prepared for any risks you may face and have the insurance to cover those risks.
The following insurance types are among the most-often needed for practically every business, no matter how big or small.
General Liability Insurance
All businesses need general liability insurance. It covers lawsuits initiated by third parties for bodily injuries and/or property damage that are directly or indirectly related to your business. It is important to note that such coverage is needed even if you aren’t at fault. Remember, anyone can sue anyone for anything. Thus, it’s the lawyer’s fees that cripple your business, even if you are right. The right insurance will cover your legal fees.
Professional Liability Insurance
This insurance covers lawsuits alleging your professional services and/or advice caused a client to suffer financially. This could be due to negligence, mistakes and omissions, and violation of contracts. Such coverage is applicable for a wide range of businesses: accountants, lawyers, real-estate agents, IT firms, and many others.
Regardless of your office space is leased or not, property insurance is a must. Such policies cover damage to equipment, furniture, and signage from events like fires, storms, and theft. Some natural disasters, like floods and earthquakes, may not be covered, so be sure to check with your agent to add additional coverage if you live in a disaster-prone region. You may also want to consider business interruption insurance to protect your revenue if your company is unable to operate due to a natural disaster or another catastrophic event.
Workers’ Compensation Insurance
If you have any W2 employees in your company, state law requires that you have workers’ compensation insurance. Thus, it is absolutely mandatory. Workers’ comp covers medical treatment, disability, and death benefits for employees. Even if your business is relatively low-risk, coverage is still needed for claims like slip-and-fall injuries and carpal tunnel syndrome.
If you have employee vehicles owned by the company, you need to have comprehensive commercial auto insurance to over them. It is a good idea to purchase “non-owned auto liability coverage” in case an employee fails to renew their insurance or has inadequate coverage.
Employment Practices Insurance
If you have employees, one of your biggest risks is getting sued by one of them. If you have employment practices insurance in place, however, a lawsuit against you would be covered by your policy.
As your Access Lawyer, we’re experts at helping business owners assess the legal risks they face and determine the insurance they need. Contact us today to discuss exactly what kind of insurance you need and what levels of coverage will best protect your company.