Posted on: 30 June 2020
As a business owner, there are many responsibilities that you must take on. One of the more important responsibilities is protecting your business from certain risks that could potentially endanger its overall success. If you fail to have the right business insurance under your belt, a single disaster can wreak havoc on your business and potentially result in you losing absolutely everything. Each business will require different coverage requirements, but there are a few basic types of coverage that all businesses will need.
General Liability Coverage
No one anticipates receiving a lawsuit, but in the event that it happens, you need to make certain that your company is ready to handle it. With general liability insurance coverage, you will be covered in the event that someone gets injured while on your property and decides to file a lawsuit against you. In addition, you will be protected in the event that property damage is caused to a third-party.
Commercial Property Insurance
If you run your business from a physical storefront, or your business has inventory, it is imperative that you have commercial property coverage. This type of insurance will help to provide the expenses to repair or rebuild your building in the event it suffers damage during inclement weather, fire, vandalism, or another covered event that is outlined in your policy terms. In addition, this type of coverage offers protection for the contents inside the structure if they are stolen or damaged. These contents may include inventory, equipment, or furniture.
Business Interruption Coverage
Following a natural disaster or other catastrophes, should your business have to shut down for an extended period of time, this can cause a serious hit to your bottom line. In most cases, it could result in your company having to close its doors permanently. However, if you have taken out business interruption insurance, some of the profits that you would have made during the time that you were closed, you will be able to recover. In other words, you will be able to meet your financial obligations even though your doors are closed.
Workers' Compensation Insurance
Under most circumstances, you will be required to have workers' compensation insurance if you have employees on the payroll. This is beneficial not only to you as an employee but also to your employees, as it will protect you against lawsuits and provide your employees with the finances they need to make it while they are off of work due to a work-related injury.
If you would like to learn more about the type of business insurance your company needs to take out, contact an insurance agent today.Share