From the first day that a business is started, it is exposed to a number of certain risks. Even before the first contract is signed to hire the very first employee, a business is at risk, meaning that having the right types of insurance in place in order to protect it is important. Just one claim, lawsuit or other catastrophic event can often be enough to completely wipe a small business out before it even has a chance to get off the ground. Thankfully, business owners have access to a wide range of different insurance types in order to protect them against a variety of risks and dangers. We’ve listed some of the most important types of insurance for your business here.
Professional Liability Insurance
As a business owner, professional liability insurance is the first policy that you should be signing up for. This type of insurance will cover your business against negligence claims due to harm or injury that is caused by failure to perform or mistakes in manufacturing. Every business can get a professional liability insurance policy, with no ‘one-size-fits-all’. Each industry comes with its own separate set of concerns which will be detailed in a customised policy written for your company.
If you own or rent any sort of business space, whether this be a warehouse for storing goods before shipping, offices, or a retail space, you will need to make sure that this property is suitably insured. Property insurance will ensure that you are financially protected in the event of theft, break-ins, criminal damage or natural disasters such as fire and storms. However, it’s important to note that many mass-destruction events, such as large floods or earthquakes, are not covered in many standard property insurance policies, therefore it’s important to enquire with your provider beforehand if your area is prone to these types of events.
Motor Trade Insurance
For any businesses which deal with the motor trade industry, having motor trade insurance is a necessity. This type of traders insurance is vital for any company which buys and sells vehicles, offers vehicle repairs and servicing, roadside breakdown coverage, or car wash and valeting amongst many others. A motor trade insurance policy will cover your business for driving vehicles on the road as well as protect you from events such as fire, theft and accidental damage to the vehicles that your company uses or sells.
Worker’s Compensation Insurance
For any business which hires employees, worker’s compensation is an essential insurance policy which should be taken out from as soon as the first employee signs their contract. Worker’s compensation insurance will protect your business in the event of any claims or lawsuits brought on by employees who have been injured or hurt at work. Worker’s compensation insurance tends to cover things such as paid sick leave, worker’s medical bills, benefits, and any compensation pay-outs in the event of an employee becoming hurt or injured at work.
These are just a few of the main insurance policies which are essential for many businesses.