From the moment a business starts operations, it’s exposed to various risks. One expensive lawsuit or disaster can close your doors for good. That’s why you need to make sure you have the right insurance policies in place to protect your company.
According to BrokerLink, all small and medium businesses need one or more forms of insurance products. In this article, we’re going to look at five policies that every company owner should have.
General Liability Insurance
General liability insurance should be the first policy any business owner gets. These plans can cover a wide variety of issues, from injuries to property damage. You can also combine it with a business owner’s policy, which generally includes additional liability and property coverage.
The moment you hire your first employee, talk to your broker about workers’ comp. If a staff member is injured or dies because of their work, these insurance policies will cover medical treatment, disability, and death benefits.
Skipping on a workers’ compensation plan is a sure-fire way to open your business up to a lawsuit. An employee doesn’t need to work with dangerous equipment to be at risk. Even carpal tunnel syndrome can mean an expensive claim.
Cyber insurance is essential for any business. Most companies experience a cyber-attack at some point, and as many as 27% don’t have any policies in place to cover these data breaches.
If you have a website and use email, you’re a mark for cybercriminals. In fact, being a small business can make you an even bigger target, since many hackers know smaller companies don’t have any significant network security systems in place. If you don’t have cyber insurance yet, speak with your broker as soon as possible.
Many events and disasters can interrupt your day-to-day business. Naturally, if your company can’t operate, you can’t generate revenue. That’s why you need business interruption insurance. These plans can help cover salaries and lost income for a certain period.
If you’re unsure which policy your company needs, speak with your insurer to ensure you don’t suffer significant financial loss due to business interruption.
Bonus: Home-Based Businesses
Many entrepreneurs start in their houses or garages. However, just because you have a home-based business doesn’t mean you can skip insurance. Unfortunately, most homeowner policies won’t protect everything that a commercial plan does.
If you’re running your business out of your home, contact your broker to determine if you need to get any extra cover. You should get additional policies to cover your equipment and your product inventory, at the very least.
As an entrepreneur and business owner, you’re always exposed to certain risks. While you can’t mitigate them completely, you can get insurance policies to help you deal with these risks’ financial impact.
From general liability to business interruption and cyber-attacks, skipping on these insurance policies leaves you and your company exposed. Ensure that you have the right plans in place, especially if you have employees that need to be covered.
If you’re not sure what you need, speak with an insurance broker and ensure that your business is protected.