The opinions expressed by the employees of entrepreneurs are personal. An entrepreneur is exposed to certain risks from the day his company starts, even before hiring the first employee.
A lawsuit or a catastrophic event outside the company’s control is enough to destroy a business before it can react. Fortunately, numerous types of insurance can save your business and avoid the pain of an external event to end with him and your dreams.
However, there are situations that a large percentage of small and medium enterprises face equally and can be prevented with good insurance.
Here we explain five types of insurance for your company.
Company owner policy
Provides liability coverage if a member or a product of your business causes damage to third parties.
It also protects in case of suspension of activities. The coverage applies to the actual loss that the business has had because of the interruption of activities derived from a loss that is covered by the policy. For example, can you imagine the losses that Do they generate in a call center if the light is cut by a thunderstorm one day?
Although no insurance covers the needs of each business, many business products are highly customizable.
Property damage insurance
Here we talk about securing equipment, inventory, workspace, furniture, etc.
Suppose that there is a fire in your workspace for some reason, there is a robbery. There are strong winds that destroy part of the furniture. How much would it cost to replace all your work material? Even if your business is in your own home, you should consider insurance of this type.
There are natural disasters, such as a flood caused by a hurricane or an earthquake, whose damage will probably not be covered by a standard policy.
In other cases, property damage insurance does not cover damages for the deterioration (use) of the property itself. Ensure that your policy covers losses outside the property, especially if you frequently travel outside the company with valuable products.
Medical expenses insurance
Although the type of work that employees develop is relatively low physical effort, not having this insurance can result in a costly demand in case of not having coverage and suffering an accident during working hours.
Vehicle insurance
Hire auto insurance covers (at least) damages to third parties to the employee who drives it, protecting the automotive unit.
If the employee uses his unit for work purposes, this must also be insured and protect both the driver and third parties.
Life insurance
Some insurers include this benefit under a payroll deduction scheme, allowing companies to have life insurance for their employees without disbursing large amounts of money. This insurance consists of providing a sum of money to the family member, designated by the employee, in death.
Insurance for your business is as personal as your company needs it. The most common coverages are those against fire, theft of merchandise, and general civil responsibility. The total insurance premium with the basic coverages is between $1,800 and $3,000, depending on the business requirements.
Having protection for your company is as essential as your car or your medical expenses insurance because it means the difference between the loss of your business or its success. Insurance for your business will always be budget able. A catastrophic event without insurance never will be.
Crucial considerations before purchasing business insurance
- Conduct thorough research to find out the best business insurance plan.
- If you are a newbie in the business field and do not have an idea of upcoming risks, you should hire experienced professionals and select accordingly.
- Check all your needs and make a list of them before a planned purchase.
- You will inform your insurer fast if you need extra coverage for the damages that occurred due to disasters.
- Identify your business peril to buy a plan. You must have maximum coverage for damages, and its premium costs must be affordable.
- You can get higher insurance coverage against your requests. Only you will have to deduct an insurance amount to minimize it.
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