As an entrepreneur, the moment you begin operating your business, you inadvertently open your business up to an array of risks. For new businesses, having to contend with a lawsuit could potentially break your business. Therefore, it is crucial to have some forms of business insurance in place even before you hire your first employee or ship your first product. However, not many business owners know what types of business insurance they should invest in. Below are some of the different types of business insurance you could consider when consulting with a business-insurance broker.
Professional-liability business insurance
This type of business insurance is also referred to as Errors and Omissions (E&O) insurance. It functions to cover your business against any claims of negligence that could result in harm or the malfunction of your products. It should be noted though that professional-liability insurance is not designed to fit all forms of businesses. Different industries will have their own individual risks. Thus, you would be best advised to seek a customised policy that would fit your specific business.
Property business insurance
An assumption some new business owners make is that having property insurance is only essential if they have bought their business premises. The reality of the matter is that this form of insurance is important whether you are leasing your business space or not. This is because property insurance does not merely cover the physical structure of the premises. It also encompasses an array of other items, such as inventory, your furniture, your business equipment and more. It should be noted that property insurance may not protect your items against risks due to natural calamities such as floods or earthquakes. Nevertheless, it would be a good idea to have it in the case of theft and other forms of property damage.
Workers' compensation business insurance
As aforementioned, you need to consider insurance before you even hire your first employee. This is because you need to ensure that your employees will also be protected by your insurance policy. Workers' compensation functions to cover an array of aspects such as medical treatment for your employees or disability in the event they are permanently injured. Workers' compensation can even include death benefits in the unfortunate situation that an employee passes away while they are on the job. A misconception some people make is that low-risk businesses, for example, office jobs, may not require workers' comp. The truth is, even slip-and-fall incidents on your business premises could result in your having to make a major payout out of pocket.
Share30 November 2016
I teach first grade. My students are already interested in how money works, but they often have funny ideas about how people get and use money. I like to work out fun ways to inject financial education into our days — sometimes we play shops and the kids get to buy play items like clothing from the dress up collections or plastic fruit. We also talk about ways to buy more expensive items such as cars or houses such as borrowing money from family or from the bank. This blog has some of my tips on fun and easy ways to teach kids of all ages about money.
