A business is always at risk for certain perils. All it takes is one catastrophic lawsuit or disastrous event to ruin a business for good. Having the right business insurance is the best defense against potential threats. Does your business have the insurance that it needs? If not, here are some insurance policies you might want to consider.
1. Property Coverage
If your business owns or leases business space, then property insurance is necessary. Coverage will help replace or repair items such as furniture, inventory, and equipment following a covered event. Covered events usually include fire, theft, vandalism, and storm. Coverage will also contribute to repairing or rebuilding a damaged building.
Natural disasters such as earthquakes and floods are usually not covered under this type of insurance. You may have to purchase a separate policy to cover those events.
2. Workers’ Compensation Coverage
Workers’ compensation insurance is mandatory for any business with more than 5 employees. There’s always the possibility that a worker could get injured or killed on the job. Workers’ compensation pays for medical treatments, disability benefits, and death benefits should an employee die or become injured while working.
Your business should also have some contact with good workers’ compensation attorneys. An issue may arise with an employee that requires expert legal advice. It’s also possible you’ll need legal advice prior to obtaining workers’ compensation for your business. Davis & Sanchez are award-winning lawyers who specialize in workers’ compensation. Contact them for assistance if your business is located in Utah or Idaho.
3. Professional Liability Coverage
Professional liability insurance protects the business against liability claims. These are claims that arise when your business is accused of negligence. Your business is accused of causing someone harm because of a mistake or bad service performed by the business.
A liability policy is generally tailored to fit a specific business. Since not all businesses have the same needs, a one-size-fits-all liability policy isn’t practical. Your insurer can help you decide which options are best for your business.
4. Commercial Auto Coverage
Vehicles used for business purposes need commercial auto insurance. The coverage protects business vehicles against liability in the event of an accident. And your insurer will pay for damages that your business vehicle causes the other driver.
Liability coverage is possibly sufficient for your business needs. But you might want to consider comprehensive coverage. Unlike liability coverage, comprehensive coverage will also pay for damages caused to your business vehicle following an accident.
5. Business Interruption Coverage
Business interruption insurance protects your business when operations are interrupted. Perhaps a fire occurs and you’re forced to cease operations for two weeks. Or maybe there’s a natural disaster that prevents employees from coming to work. During this time, loss of income can occur because you can’t open the office, make your products, or make important sales calls.
You might think some businesses will benefit from this coverage more than others. For instance, a business such as a retail store that requires a physical location. Or a business that manufactures computer parts. But even if your business is online-based, you could still suffer from business interruptions.
It’s not uncommon for people to lose power and access to the internet. An online business would likely lose income, depending on the length of the outage.
Invest in Protecting Your Business
The right business insurance is crucial for protecting your business. You’ll avoid potentially devastating financial losses that can occur because of lawsuits or other disasters. Speak with a reputable insurer to learn more about business insurance coverage. Your insurer can advise you about which type of coverage is best for your business. Take this step as soon as possible to get your business the protection it needs.