6 Insurances a Small Business Owner Should Have
Starting your own business is expensive. It requires a huge capital. It also requires a lot of planning. In planning any business, minimizing risks is always the goal. That is why every entrepreneur are encouraged, if not required, to get an insurance. An insurance will not only help save the owner from getting bankrupt, but it will also cover the employees that work for the business and the consumers that buy or use its products or services. The insurance requirement for a business may differ from one state to another. Be sure to check your local office to know your state’s laws.
General Liability insurance
This insurance covers most of the damages that can hurt the company’s name or assets. It’s most likely required by the state. This will help pay for any accidents that may happen in the place of business. It can be caused by either employee or yourself. Depending on the contract, this shall also covers fires or any other damages to your property. It will also pay for any damages done via false advertisements, like libel, slander, or any copyright infringement. Furthermore, it will also help for the legal expenses and settlements that should happen.
Vehicle Insurance
Commercial vehicle needs a separate insurance. This will cover the same as your car insurance. However, it will have more and better choices for your business. This shall cover any employee inside the car at the time of the accident. It shall also cover the cost of repairs and replacement of the vehicle. Some even offer to cover uninsured drivers and borrowed vehicles. Compare car insurance quotes and see what will work best with your business.
Product Liability Insurance
This is an insurance that a business should have if they are selling products. It will help pay for any damages that may arise due to a defective product. Additionally, it will cover sold defective products with lawsuits about defect or malfunctioning. Lastly, this will pay for any settlement accounts the defective product may incur.
Commercial Property Insurance
This is a more comprehensive version of the general liability insurance. While it also pays for any damages to your property, this insurance also pays for the damages on your property. This will include fixtures, machinery, computers, and the likes. This will help ensure not only your investment in leasing or buying an office space but also your equipment and other machines.
Worker’s Compensation Insurance
The law requires that all businesses with employees should have this insurance. According to the Office of the Worker’s Compensation Program (OWCP) this insurance will cover the (1) wage replacement benefits, (2) medical treatment, (3) vocational rehabilitation, and (4) other benefits. This insurance is important when hiring employees, as accidents and work-related injuries happen all the time.
Business Interruption Insurance
With the drastic climate change, this type of insurance will be useful for unforeseen disasters. This may cover the loss of income during the time of the disaster. It will also help cover the rebuilding process of the business, as well as the possible closing of the business due to the calamity.
