Did you realize that only around 40 percent of the small businesses in America are considered profitable? Taking a small business from startup to success story can be one of the most challenging things you do in your life. The key to having a successful business is preparing for the worst but hoping for the best.
One of the main things you need to do when starting a business is to find out about the insurance you may need. Consulting with an insurance agent can help you understand more about the different types of business insurance. An agent can provide you information about things like public liability or workers compensation insurance before suggesting policies for you to get.
Failing to get the right insurance policies for your business will result in lots of problems in the future. The last thing you want is to close the doors of your business due to a lack of preparation.
The following are some of the different types of business insurance you may need to invest in.
1. Getting Professional Liability Insurance is Important
Meeting and exceeding the expectations your clients have is essential when trying to have a successful business. While most businesses start off with the best of intentions, Murphy’s Law can create situations where they are not able to produce the results their clients expect. Having errors and omissions insurance is vital when trying to avoid damage from a mistake or the inability to perform.
Errors and omissions insurance, also known as professional liability insurance, needs to be customized to fit the needs of your business. Businesses in different industries will have different types of concerns.
Working with a reputable and knowledgeable insurance agent will help you develop a customized policy with ease. Without a professional liability insurance policy, your business may go under due to negligence claims filed by unhappy consumers.
2. Investing in Property Insurance
Buying commercial real estate is something most business owners will do at one time or another. If you are running a retail-based business, you will need a commercial space that consumers can visit. Having property insurance is essential when trying to avoid losses due to storms, fires or theft.
You need to be aware that acts of nature like earthquakes and even floods are typically not covered in standard property insurance policies. If the area you are setting up shop in is prone to these types of disasters, then you need to find out how to add them to your property insurance policy.
Having the right insurance for retail establishments can minimize the risks you have. An experienced insurance agent can provide you with some guidance when it comes to customizing your property insurance policy.
3. Finding the Right Workers’ Compensation Policy
As your small business starts to grow, you will have to hire more employees to lighten your workload. Keeping these employees happy and healthy should be one of your main concerns. Making sure your team is protected in the event of a workplace accident is only possible with a comprehensive workers’ compensation insurance policy.
With this insurance, you will be able to cover medical treatments, disability payments and even death benefits for your workers. Some business owners think that this type of insurance is only needed for high-risk work environments.
Regardless of how safe you feel your workers are, you need to have a workers’ compensation policy in place. Without this type of insurance policy, your company will be at risk of being sued in the event of a workplace accident.
4. Product Liability Insurance
Does your business manufacture products that are sold on the open market? If you answered yes, then having a product liability insurance policy is crucial. Each year, thousands of consumers file lawsuits against product manufacturers for a variety of reasons.
If you have a product liability insurance policy in place, it will minimize the amount of damage these types of lawsuits can cause. Even if you feel like you have taken every precaution to put out a safe product, you still need one of these policies.
The best part about getting one of these insurance policies is that they can be tailored to fit the needs of your business. Each product liability policy is written for a particular product and not with a one size fits all template.
5. You Definitely Need Vehicle Insurance
Many businesses use delivery vehicles to provide quick and efficient service to their clients. If you have a fleet of vehicles you use on a daily basis, keeping them insured is something you should view as a priority. Most states will not even let you register or drive a vehicle without the right insurance policy.
The policies that you get for your commercial vehicles should cover everything from injuries to damage to the vehicle itself. If your employees drive their own vehicles for work, you will still need to get them insured with at least a third-party liability policy.
6. Take Advantage of Business Interruption Insurance
Some business owners make the mistake of abiding by the “it will never happen to me” philosophy. Rather than laboring under the delusion that your business is untouchable, you need to prepare for disasters before they occur. This is why having a business interruption insurance policy is so important.
With this policy, you can get compensation for the time your business is closed following a natural disaster. This policy will also provide you with the ability to compensate your employees.
Find Out More About the Different Types of Business Insurance
If you want to find out more about the different types of business insurance on the market, you will need to consult with an experienced insurance agent. With their help, you should have no problem getting the right policies in place.
Are you looking for more business-related advice? If so, check out our article on how to choose the right business structure for your company.