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Types of Business Insurance

Starting a business is not easy. It will require a lot of planning before you can start one. If you plan to venture into it, you might also want to consider getting business insurance.

Of course, getting one is not free and it will require you to take out some decent cash. But come to think of it, you can never really tell if an unfortunate event will happen or not, and if it does, you need to know that you have the relevant protection. It’s as easy as looking on websites similar to financegab.com to find out how having business insurance can protect you. Insurance can save your business from total closure and it can save you from pulling out more cash if ever.

Why do You Need Insurance?

Here are reasons as to why it will be such a wise decision to get business insurance. Also, these will convince you as to why it is a worthy investment.

1. Protection for you and your Business

just like all types of insurance, in case something happens such as an accident, it will give you peace of mind to know that you are covered. All business owners should protect their business with public liability insurance, as this is the basic level of protection, and it can help cover any forms of compensation made by the public and legal costs.

2. Required by the Law

for a business that will be having employees, the government will require you to have business insurance. Failure to get one may cause bigger problems for you like paying for fines or termination of your business to name a few.

3. Business Credibility

let’s face it, your clients will opt to choose your products or service if they know that they will be safe in the event something bad happens.

4. Replacement for Losses Due to Disasters or Theft

you can never tell when a hurricane will hit your business place; Global Claim Advisors has experience helping business owners get back on their feet after disasters by developing a claim strategy to efficiently manage their claims and get them the settlement they need to recover. In the same manner, if a theft breaks in at night, having insurance can cover repairs and losses for these unlikely events.

5. Attracts Employees

other than good compensation, employees would want to work where they know that they will be secure.

6. Provide for Loss of Income

a typhoon hit your business area and it would take days before you can return to operations. Having insurance will cover the loss of income for the time that your business is closed due to uncontrollable events.

7. Peace of Mind

there are things in life that a person can’t control. Knowing that you are covered and insured can help you get to sleep at night. With a lot of things that you worry about, then you can take one less worry off your list.

8. You Don’t Know What the Future Will Bring

you cannot predict what is about to happen (unless you are a fortune teller). You cannot tell if an employee of yours will get injured or if there will be a fire in your shop. It is always best to know that you are insured if such things occur.

Types of Business Insurance

Now that you know the importance of getting insurance, here are the types of business insurance that you need to have.

1. General Liability Insurance

spend on general liability insurance as this will protect you and your business from injuries, negligence, and accidents. It can help you in payment for property damage and bodily injury.

2. Workers’ Compensation Insurance

this will provide insurance for your employees. It will cover medical treatments, disability as well as death benefits. This means that in case something happens to your employees, they can’t sue you.

3. Property Insurance

this insurance will cover your business’ equipment, furniture, and inventory if there are fire, theft, or storm incidents. Whether you own or lease the place where your business is, getting this insurance is extremely important.

4. Auto Insurance

if you are using company cars for your business then getting this is a must. This will protect your employees and products in case an accident happens. If your employee, however, uses his car for business use, then consider getting a non-owned auto liability.

5. Professional Liability Insurance

also well known as Errors & Omissions Insurance. This will protect your business from negligence claims due to mistakes or because you failed to perform some service.

Also Read: 6 Ways to Optimize Your Small Business Financial Processes

Bottom Line

Make sure to contact your broker or agent to discuss with you the coverage of the insurance you need. It is important to know that you will be fully covered once something gets out of hand. Business Insurance certainly is an additional expense for you. However, paying for damages and legal services can cost so much more compared to paying for insurance premiums. Now you don’t want that, do you?

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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