Have you ever imagined that if something serious happens with your business, what will you do? Business insurance can help you run a business with ease as it’ll help you protect your business from losses or damages. So, let’s understand the importance of business insurance with us.
Understand Business insurance
The NAIC (National Association of Insurance Commissioners) is responsible for laws and regulations in order to standardize insurance agents. It consists of life insurance, property, and casualty insurance, financial regulation, etc. If you’re a small business owner, having insurance is something that you have to carefully consider. Plus, if you’re not ready to take a risk, you can work with an experienced and licensed insurance company.
6 Types of business insurance
1. Professional Liability Insurance: This type insures against negligence claims that is the issue from any mistakes of performance.
2. Property Insurance: It covers equipment, inventory, or even furniture from the event of something unexpected. However, it doesn’t cover if the damage comes from mass-destruction events.
3. Home-Based Businesses: For this type, you can ask for more coverage for equipment and inventory
4. Product Liability Insurance: This type is vital if you have manufacturer products.
5. Vehicle Insurance: If the vehicle is being used in business, automobile insurance will cover accidents, third-party injuries, and also delivery personnel as well.
6. Business Interruption Insurance: This type is recommended for a physical location to do business, such as retail stores. It’ll help with the lost income during the interrupting event.
11 genres of insurance that small businesses need
1. General liability insurance
This type of insurance keeps your business safe from claims. For example, when an accident happens to your customers, and it causes injury to their body or properties are collapsed, this insurance helps you in medical payment
2. Professional liability insurance
The coverage in this insurance manages claims when mistakes or errors in your business services occur. For example, if someone in your accounting department makes a wrong statement of customers’ finance, this insurance helps you save legal costs because your business will probably be sued.
3. Business income coverage or Business interruption insurance
If covered property damage makes your operations unable to carry on such as fire damage or robbery, this coverage can help you in changing the position of the lost income.
4. Commercial Property insurance
Things that you use in operations such as rented buildings or machinery are secure because commercial property insurance helps you protect your own assets. For example, if there is banditry, and someone tries to destroy and steal your office supplies, the replacement damage will be covered by this insurance.
5. Workers’ Compensation insurance
It provides protection and welfare for employees. Thus, when they encounter situations that make them sick or get hurt and injured, they can receive benefits from this insurance. For instance, if the employees have diseases or disorders caused by the working environment, this coverage can pay for their treatment costs.
6. Commercial Auto Insurance
When you or your employee have an accident while working for a company. Commercial auto insurance can help pay for the damages, including cover asset damage and bodily injury as well.
7. Data Breach Insurance
Here are features of data breach insurance or called ‘cyber liability insurance’ if your personally identifiable data was stolen or lost. This insurance can help cover your damages as follows:
- Improving your business’ reputation by create campaign
- Providing credit monitoring services
- Informing impacted customers
8. Commercial Umbrella Insurance
Commercial umbrella insurance helps pay the difference when a claim exceeds your policy’s limits by extending the limits of some liabilities policies that your company has.
9. Employment Practices Liability Insurance
Employment practices liability insurance or known as ‘employers’ liability insurance’, which can help an entrepreneurs protect their business from employment-related claims, such as sexual harassment, discrimination, wrongful dissmissal, etc.
10. Business Owner’s Policy (BOP)
The most popular kind of insurance is business owner’s policy (BOP). It consists of business income insurance, general liability insurance, and commercial property insurance.
11. Hazard Insurance
Some insurance companies may call commercial property insurance because it’s another name for hazard insurance. This insurance is coverage that protects a property owner against damage caused by other natural events, like fire, building, sleet, etc.
If you still don’t have a clue or where to start, the Get Unstuck Method could help you from the beginning! Contact us at https://www.getunstuckmethod.com/get-unstuck-nation/
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