Types of Insurance Every Business Should Have
From the very moment, your business is established, you’re faced with certain risks. One wrong move, accident, or unsuspecting lawsuit could put your company out of business before it ever gets started. Fortunately, there are products entrepreneurs can invest in to protect their small business in the event that something should go wrong. The right insurance policy, for instance, can provide financial coverage for circumstances beyond your control. Here are some you should consider investing in.
Professional Liability Insurance
Professional Liability insurance provides protection for entrepreneurs against clients who may file a lawsuit with claims of negligence, work mistakes, or undelivered services. Ideally, if a client claims that your services caused them to lose money as a result of poor performance, your policy would cover the costs of fighting the case in court and the expense of certain awarded damages to the client.
Whether you lease or own your commercial property adequate insurance coverage is recommended. Such insurance provides financial compensation for inventory, equipment, and furniture in the event of a storm or burglary.
Many businesses have company cars or operate from their vehicles to provide a service. If this is the case, you will want to have auto insurance for protection. Should you or someone working for you get involved in an accident, it would provide the same protections as your personal car insurance. You can find affordable policies by looking for companies in your area. For example, if you live in California, you can find car insurance rates sacramento from local providers.
Workers Compensation Insurance
If you plan on hiring employees, you’ll need to make sure you have workers compensation insurance. This provides financial coverage for medical treatment, disability, and death in the event that an employee is injured while in the workplace and/or dies on the job.
Product Liability Insurance
Though you strive to manufacture products that are safe for your customers, accidents can happen. Should a customer get hurt while using your products, product liability insurance would provide financial assistance for legal counsel and any awarded damages.
Every entrepreneur has good intentions when starting a business. However, there are so many different risk factors to be taken into consideration. From disgruntled clients to injured employees and car accidents, getting the right level of insurance coverage now, can save you thousands of dollars down the road.