Types of Business Insurance that Every Business Should Have
Both small and big businesses need business insurance to ensure that they survive and succeed in the long-term. Although there are different types of business insurance, there are a couple of policies that a business cannot do without.
Any insurance expert will insist that worker’s compensation insurance is of vital importance to your business. As a matter of fact, the law in many states across the US requires employers to have this policy. This insurance policy allows for employees to be compensated for medical costs and a portion of the wages lost as a result of injury in the workplace. The law is always different in different locations which makes it very important to work with an insurance professional to ensure that a company the coverage prescribed under the law.
A business must have general liability insurance to protect its interest on various situations. General liability insurance protects the business from claims like accidents or injuries in the work premises. When a cover for general liability is taken, the insurance pays for various thinks including medical expenses, legal costs, slander and faulty product. A business does not take out general liability insurance expecting to get sued but it since it is always a possibility, it is important to be prepared. General liability insurance is, therefore, a business’s way of preparing for the worse.
Professional liability is also another common cover for businesses. Another name for this coverage is malpractice insurance. One can use this insurance coverage to protect themselves and the business from lawsuits that allege negligence in the provision of professional services or errors made in the provision of services. Business that offer professional services, as well as other kinds of businesses, need this type of cover the most. Even as a business strives for excellence, mistakes do happen, and it is important to be cushioned against the expenses that come with such mistakes.
Business insurance cannot be complete without property insurance. Property insurance allows businesses to insure their property so that the can be paid by the insurer if something was to happen to it. Insurers like ASAP have all-risk policies that protect different types of property against destruction.
Businesses in Chicago and other areas in the US also need business interruption insurance. Imagine being compensated for loss of revenue when a catastrophic even occurs, isn’t that a nice thing?. Business interruption insurance is more important for those businesses that operate physical locations in different parts of the country. With this insurance cover, businesses can lessen their burden during a catastrophic event that affects the businesses revenue stream.
Business insurance is very important for every business because it helps shield against unexpected payments. Insuring your business ensures that it can survive and even excel in the competitive markets.