5 Simple Types of Insurance Every Business Owner Should Have

As a business owner, you already have a lot on your plate. You have to think about capital, investments, revenue, management and other business related issues in your company. However, there is one more topic you need to tackle with and that is insurance.

Having a proper insurance is vital for a company since it can save you from serious expenses and losses in case of lawsuits. Also, you will also be protected in case of criminal actions against you like theft or property damage. With so many insurance companies out there, you need to know your options, and here are the 5 simple types you should consider.

General liability insurance

The most basic of all types is general liability insurance which is very common among the business owners. This insurance will cover the damages and injuries which were caused by the third party including if it was done by their property and assets. However, the coverage also includes damages that your product or service may have caused.
If your company was found responsible for the damages to the third parties then the insurance will cover it. This means that any medical expenses, attorney fees, and other compensation will be taken care of by general liability insurance. Therefore, this is the type of insurance you should seriously consider having in place.

Property insurance

Whether you own a property or are leasing it, you should consider buying an insurance policy that will cover any damage to the assets. Property insurance applies in case of theft, fire, environmental catastrophe and burglary which led to the damage of property and equipment.

Since environmental catastrophes like floods and earthquakes are not always included in the policy, check the provisions of insurance with your company. You can renegotiate the better deal especially if you leave in the areas prone to these natural disasters. If that is not possible, you can always take a separate insurance policy that will cover these events.

Professional liability insurance

When dealing with clients and customers, there is always a possibility to be deemed responsible for certain claims. Professional liability insurance will cover the costs and offer protection in cases when clients or customers suffer from your negligence and breach of contract. This also applies to any damage caused by the services you provided, as well, similar to the general liability insurance.

However, professional liability insurance is different for every industry and you will need to customize it with your agent to fit your needs. Also, when you look for the NDIS provider application assistance, you will see that this type of insurance is one of the prerequisites. If your company’s main activity is to give consults and provide services, like accounting or real estate, then you should have this insurance in place.

Product liability insurance

Since every product can cause damage to the user or their property, having a product liability insurance is especially important for manufacturers. This policy protects you if any claim or lawsuit arises because your product was faulty and caused damage or injury. This is also an insurance you can adjust to fit your company's interests and policy, although the basis provisions already cover most of it.

In case of a lawsuit, product liability insurance will cover the legal costs and settlements if your product is found responsible for the damage. Consider buying this insurance even if you are a small scale manufacturer or have one product since accidents happen, but they can cost you a lot.

Worker’s compensation insurance

Worker’s compensation insurance should be in place from the moment you hire your first employees. This type of insurance policy is beneficial for both the employer and the employees since it covers important aspects in case of accidents at work. There is basically no company that doesn't carry certain danger or risk to its employee, even though it may not appear so.

If your employee suffers from a medical condition created at work, like an injury from a fall or even back problems from a bad chair, you could be sued. Even a carpal tunnel syndrome is cause for a lawsuit, so don't neglect any possible medical injury or condition developed due to the work environment. Worker's compensation insurance will cover medical costs and also provide certain benefits for the family in case of employee's death. Therefore, this type of insurance policy will care for the employee while protecting you from financial loss.

There are other types of policies that may not apply to every business like vehicle insurance and cyber liability insurance. So, before you decide to buy certain insurance, check its provisions and negotiate additional items that fit your business. It is your responsibility to take care of your business, products, services, and employees and the best was to do that is by having an appropriate insurance in place.