When launching any kind of business, there are certain insurance policies that are compulsory. Have a think about what kind of work your business does, as well as the risks you need to cover. For instance, is there a possibility a member of the public could get injured on your workplace premises and claim compensation? Or could you face a compensation claim from an unhappy client because they believe you have been negligent?
Whatever field you’re in, here are some insurance coverages you need to obtain before going any further.
General Liability Insurance
General liability insurance is a fundamental component of small business insurance. This type of policy is purchased to cover legal hassles due to injuries, accidents, and negligence claims. General liability insurance protects against payments as a result of property damage, bodily injury, medical expenses, and more.
Commercial Property Insurance
Another component of small business insurance is commercial property insurance. This is designed to shield your rented or owned business and any equipment that’s used to run your company. It must be noted that this insurance policy won’t cover damage from floods or an earthquake. You will likely have to take out a separate policy, such as commercial flood insurance. The definition of ‘property’ is broad and includes a variety of things, such as interruptions to your business and loss of income.
Workers’ Compensation Insurance
If an employee in your business gets injured at work or has to take time off work, they will benefit if you have workers’ compensation insurance in place. These benefits can help pay medical bills, replace the majority of their lost wages, and pay for ongoing care, such as physical therapy. Should an employee lose their life due to a work-related illness or injury, workers’ compensation insurance covers funeral costs too.
Professional Liability Insurance
Professional liability insurance covers lawsuits that claim you’ve made a mistake in the services you provide. This kind of insurance is otherwise known as E&O (errors and omissions) insurance. Mistakes can happen in any business, regardless of how much experience you have. Should you make an error and have a lawsuit on your shoulders, this insurance policy provides much-needed coverage.
Cyber Liability Insurance
For small businesses who operate online, you need to be aware of the dangers that lurk on the world wide web. You must keep your digital data safe and secure; otherwise, cybercriminals may gain access and wreak havoc on your business. This is where cyber liability insurance comes into play. This policy protects you and your small business if your digital data is compromised. Covered expenses can include data recovery costs, as well as boosting your digital security. While cyber liability insurance is non-mandatory, it’s definitely worth taking out.
You can purchase insurance coverage for any conceivable risk your company may face. The amount of coverage and cost of policies will vary from insurer to insurer. Just make sure you have business insurance in place before operating, as you could be handed a hefty fine and face legal trouble otherwise.