Know These Kinds of Business Insurance and Their Purpose
Business insurance is one matter in having a business that you will be advised to have no matter what the size or nature of your business is. When looking for a new business insurance or reviewing your present one, you have to take into consideration some matters with regards to your business. Note that different insurance requirements are needed for every kind of business. For example, a company that offers services will have different insurance from that of a company that manufactures goods, and so there are some kinds of insurance that the business has to consider.
For your employees, the type of insurance to consider is the workers’ compensation insurance, which is actually required under the law in every state. This kind of insurance can provide employees who become ill or injured on the job like slips and falls, with the medical costs and part of his or her lost wages.
Depending on where your establishment is located, the laws are different concerning workers’ compensation, therefore, make sure that you will get the advice of a professional in insurance to ensure that the coverage your got is right for the needs of your business in particular.
As a protection against various claims like accidents, injuries or negligence, the general liability insurance is another kind of business insurance meant to protect the owner of the business and the company itself. Companies will be helped through this type of insurance in paying for matters such as damage in the property, expenses regarding medicines, libel, slander, legal costs and products that are faulty. As much as possible a company does not expect to get sued, but this is one reality that is a possibility, and so to protect your business to these kinds of situations, it is better to have a protection.
Another kind of business insurance is called professional liability insurance, known as “Errors and Omissions Insurance” or “Malpractice Insurance” which a service- based firm has to have as protection in its operation. There could be alleged negligence of the company’s professional services, or making omissions and mistakes or in providing shoddy job, and this kind of insurance can protect the establishment.
Another kind of business insurance is the commercial property insurance to ensure that equipment can be replaced from damage or destruction, and this is advisable for small companies to have, especially where there is a possibility of lesser funds to replace these things. A firm’s properties like buildings, computers, inventory, supplies and equipment are covered in this type of insurance, and this comes in two types of policies – the “all risk” policies and the “named-peril” policies.
Important to a business is its executives and high quality employees, and so to entice them in your company, you can offer life insurance.