ABC Guide To Insuring Your Business
One of the most important aspects that an employer, a businessman or an owner should never forget is to insure the business. You can never predict what will happen and no one wants to lose everything due to an accident or misfortune. This is why every company should be insured with the help of specialized firms and lawyers, who will aid you in choosing the amount of money that should be covered and also the type of insurance that is best for your business.
Calamities can be natural, like fires, flooding or tsunamis, but they can also be human-related. An employee might have an accident, or you could be sued by an unsatisfied client and all your life-savings could be lost on legal fees and compensations. You don’t want this to happen, so insure your business and you won’t have to worry about surprises.
The first step an entrepreneur should do is to choose the coverage. Almost any possible risk can be insured and the cost is different depending on the insurance firm you work with. There are standard packages at lower prices that you can buy, like BOP (Business Owners Policy), which sums up the most common risks (flood, crime, business interruption), together with the mandatory ones such as automobile, property and liability insurance. The coverage is decided according to the size of your business and to the risk exposure. You don’t want it to be underinsured or even worse, to pay more on services you do not need at extremely high rates.
These are the most important and common types of coverage you should take into consideration when you are about to insure your business:
Liability insurance: this will save your business when you find yourself in the middle of a lawsuit regarding business- or employer-related negligence.
Property insurance: for the place of work and its contents. It deals with every kind of disaster, from fire to burglary and vandalism.
Workers’ compensation insurance: is most of the times part of standard packs, as it’s demanded by law, and it’s used in case of a work accident ended or not with the loss of an employee’s life.
Automobile insurance: if your business has cars used by the employees, this type of mandatory insurance will cover any accident and the repair cost triggered by it.
Special firms may need special insurances, like the ones dealing with toxic substances or when employers work in stressful or unhealthy environments. Examples of these uncommon policies are: bailee insurance or contamination cleanup and removal insurance; and this can raise the cost of the company coverage.
This process is highly overwhelming, hundreds of hours and papers that have to be filled in carefully. If you don’t feel comfortable deciding on your own, hire an insurer. You will pay some extra money but it will all come back to you when the policy will be made exactly for your needs and at the right prices. Regardless of the size and age of your business, a proper insurance will help you evolve without the fear that everything could go bad at the smallest bump.