All businesses will benefit from obtaining some key insurance policies. Insurance is there to protect your business – it’s a safety net that, ideally, you never need to call upon. Some business owners (particularly those with small startups) fail to see the value of insurance. You might view it as an unnecessary expense because you pay for nothing most of the time. However, it’s one of those things you’ll wish you bought if something bad does happen.
The type of insurance you need will depend on your business, though here are some of the most common and powerful policies to look into:
Worker’s Compensation Insurance
Have you hired great employees to help your business thrive? Most business owners do, which means you’ll need worker’s compensation insurance. This policy is normally legally required in most states and protects your employees if they get injured or become ill due to work conditions. It provides compensation to cover things like lost wages and medical bills, preventing you from paying out of pocket.
Liability Insurance
Many types of liability insurance exist, and the one you need to pick depends on what your business does.
Most companies will be fine with general liability insurance, though you may need to consider alternatives like medical malpractice insurance. This is suitable for any healthcare business as it specifically covers liability in cases of misdiagnosis, improper treatment, etc.
Business Interruption Insurance
A highly underrated insurance policy that most businesses don’t think about. Business interruption insurance will insure your business if it faces any lengthy interruptions.
Imagine there’s a fire in your office building, and you can’t work there for months. Or, imagine a storm ruins the stock in your warehouse and wipes out thousands of dollars of sales. Business interruption insurance pays out to keep you going during periods of extended downtime.
Cyber Liability Insurance
Do you know how common cyber attacks are on businesses? 3 in 4 businesses are at risk of a cyber attack in the US right now. That’s a damning statistic that proves the real dangers of being hit by hackers and having your data stolen.
When this happens, it costs your business an excessive amount of money. You’re technically liable for losing your customer’s data, leaving you open to lawsuits. You also have to find ways to seal your cyber defenses and recover the data, which costs a fortune. Cyber liability insurance covers you in situations like these, helping you pay for all of these annoying costs.
Now, there will come a point where you could pay for too many insurance policies. That’s why you should look at your business and assess its main risks. Where are you most likely to run into problems? If you work from home on your own, then you’re not going to need general liability insurance. However, if you have employees, then you’ll need worker’s compensation insurance. It’s all about finding out the right insurance packages to protect your business and avoid being hit with dire financial consequences that could send you under.
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