Running a business is a major endeavor. You have to protect your employees, warehouse, storefront, inventory, and bank account. If you’re not careful, you could find yourself facing a major lawsuit or crippling expense due to a hazard that was out of your control. Though insurance plans do require an upfront investment, they’re worth the money for the ongoing protection that you’ll enjoy when you have this coverage. Make sure your company has the following insurance plans in place.
Workers Compensation Insurance
Workers compensation insurance is required by law in many states if you have a certain number of employees. This insurance helps to protect you from the claims that an employee might otherwise make if he or she were injured on the job. A workers compensation policy will offer reimbursement to employees who suffer from disability, injury, or death while on the job.
Though you undoubtedly keep safeguards in place to protect your workers, this insurance is an important measure. Something as small as a slip or fall can leave you facing a major lawsuit if you don’t have the right plan in place. Be proactive about providing this protection for your employees.
Property insurance will cover your business’s physical location, including furniture, equipment, products, signs, and the building itself. This type of plan will typically offer coverage for things like a fire. Some natural disasters, such as an earthquake, may not be included in plan. This varies with your location. Read your policy carefully so you know what’s covered.
Business Interruption Insurance
Business interruption insurance is easy to overlook because the coverage is similar to what you’ll receive with property insurance. However, though property insurance provides some help in the aftermath of a major disaster, it isn’t always enough to keep a small business from floundering.
Business interruption insurance will help you cover the income loss that occurs while you’re repairing damage to your physical location. Failure to have this insurance in place can lead to major expenses that trickle down and cause other financial hardships. While debt cancellation can help in these instances as well, insurance coverage should be your first line of defense.
In an age of increasingly litigious customers, liability insurance is worth the investment. Professional liability insurance provides coverage that will help if you’re subject to a negligence claim in which you’re accused of failing to perform a particular task or making a mistake that causes some sort of damage. Product liability insurance will cover you if one of your products causes damage after it has left your facility. These types of insurance plans are typically tailored to suit the unique needs of each company.
Whether you’re starting a new business or reviewing your current finances to make sure you’re well-protected, insurance plans are something you should think about. Investing your funds in a solid combination of insurance coverages now can keep your business safe and profitable long into the future, no matter what hardships may happen.
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