Various types of business insurance and their necessity

It’s always essential to have business insurance irrespective of the size of your business. Depending on your business, you can choose the most suitable insurance policy for your business. A company which provides services might need different insurance when compared to the company which produces goods to the customers. But there are certain similarities between the two, due to which you need to consider the insurance.

  • Compensation insurance for employees: According to the law it has to be provided to all the employees in various states. This insurance would cover any kind of medical costs, costs to treat illness or injuries which have occurred in the workplace. Workers compensation might vary from one company to another.
  • General liability insurance: It protects you and your business to claim when there is an accident, injuries or negligence. It can help you to claim for any kind of property damage, legal costs, medical expenses and more. The broader the protection the better it would be as we can never predict the future events which might occur.
  • Professional liability insurance: It is also known as malpractice insurance or the errors and omissions insurance. This would be best for those who have a service providing business. Mistakes happen and professional liability insurance would help you in such cases.
  • Property insurance: Property insurance would be a great option to go with whether you have a big or small business. It would help you to replace the equipment when there is sudden damage or destruction caused. There are two types of property insurance policies – One is ‘all risk’ policies which covers maximum things and the ‘peril-specific’ policies that can cover only those specific perils which have been listed in the policy.
  • Life insurance: If you want to attract a high number of employees then it’s always better to provide life insurance to the employees. Providing life insurance would be a great way with which you can attract top talents. Sometimes if the employee is very important to the organizational functions then they might even be provided with special insurance known as ‘key person’ policy. It protects against the employee’s sudden death. You can even find business owners policy wherein few policies will be clubbed together and provided to the employee. It’s always better to review the insurance policy coverage so that it would cover everything you might need.

Leave a Reply

Your email address will not be published.