From the day a business owner kick starts a business, he will be exposing himself to certain risks.
Even before you hire your very first employee, your business is already at risk. Therefore, it should be in the best interest of entrepreneurs to protect their business. A single catastrophic event or a lawsuit can put a sudden end to your entrepreneurial dreams.
This is why you should make sure that you have the right insurance in place.
It’s a good thing that businesses can avail of a business insurance package that will protect them from such risks. Here are some of the most common coverage that you can expect from a typical business insurance package.
4 Coverage You Can Expect From a Business Insurance Package
1. General Liability Insurance
This is perhaps the most common coverage for an insurance package and every business should have it.
A general liability insurance will protect your business from claims that are filed against your business for things like property damage and physical injury. For instance, if a customer slips and falls within the premises of your business and makes a claim for the cost of medical treatment, your insurance will help cover for the cost of the claim.
This type of insurance will also cover you if you damaged someone’s property while operating.
2. Property Insurance
If you have your own building or you have commercial personal property such as computers, office equipment, or tools, you should consider an insurance package that comes with property insurance.
This type of insurance will protect your business against theft, fire, vandalism, smoke damage, and other natural disasters. The coverage extends to the property owned by your business.
If you own a commercial building or have assets that are needed for daily business operation, you certainly need this type of coverage.
3. Business Interruption Insurance
In most cases, a business interruption insurance is usually packaged with a property insurance policy.
Basically, this type of insurance will cover the lost income and increased expenditures resulting from a covered peril. For instance, if a fire has made your place of business uninhabitable, a business interruption coverage may help you pay the rent for a new workspace.
However, this type of coverage has limits. In most cases, the coverage will only apply after a certain time limit such as 30 days.
4. Workers Compensation
In most states, a workers compensation policy is required for entrepreneurs with one or more employees. The coverage provides benefits to employees in the event of workplace injuries or illnesses.
The coverage includes lost wages from lost work hours and medical bills. More will be provided for employees who become injured or sick while working for the business.
Certain types of workers like federal employees, volunteers, and independent contractors are not covered.
Protect Your Business With the Right Business Insurance Package
These are just some of the most common policies that are included with a typical business insurance package. Before signing up with an insurance package, make sure that you understand each policy and their limitations.