5 Types Of Insurance Every Business Needs
If you are thinking about starting up a new business then you will have a million and one things to consider. One thing that should be near the top of your list of priorities is making sure that you have the right insurance in place to cover you and your employees for any eventuality because when it comes to business things very rarely run smoothly. So what types of insurance does your business need to have in place to ensure that you are fully protected and able to keep trading in the face of unforeseen circumstances? Here are 5 examples:
Whether you own or rent your business’ premises it is still essential that you property insurance in place. That way all of your stock and/or office equipment will covered in the event of a fire or break in. A mistake that a lot of businesses make is to underinsure their content when it comes to their property insurance. Underinsuring happens when a business insures their building and contents for lower than it’s actually worth as they believe that everything will not be stolen or damaged all in one go. This is an unnecessary risk which can lead to you not being able to claim for everything that you have lost.
Another aspect to your property insurance which is worth considering is interruption or loss of earnings insurance which compensates you for any loss of earnings you may incur after damage or loss of equipment leaving you unable to operate as normal.
Professional Liability Insurance
This is an important thing to have if you are providing a service to the public or other businesses who could make a claim against your company for failure to deliver an inadequate service or perceived negligence. Your Professional Liability Insurance will cover your legal costs and damages that may need to be paid out by you to the claimant. If however, you are found to be in the right then this insurance will provide you with compensation for any loss of earnings that may have resulted in the case against you.
If your company uses vehicles in any capacity be it for deliveries or simply as company cars to get to and from meetings, you will need to have vehicle insurance in place. You should at least have third-party injury cover, however it is strongly recommended that you have comprehensive cover which will protect you and your employees in the event of an accident as well as theft and injury. If you are in the transport business then you will need to get haulage insurance cover. This can be a confusing process but you will be able to broker a policy which is specific to your company’s needs.
Data Breach Insurance
This is an increasingly important form of insurance for modern businesses. The business world is becoming ever more reliant on computers and cloud technology and with that comes a greater risk of being hacked and losing or leaking important information. This can cost businesses everything and so it’s vital that you have the appropriate insurance in place in case such an attack befalls you. Data Breach Insurance will cover your business should sensitive information that you store be accessed whether it is stored online or via paper files.
Employee Compensation Insurance
Even if you only have one employee you will need to have employee compensation insurance in place. This will provide you with cover if injury or even death is caused as a result of working for your business. Any medical bills incurred by an employee as a result of an accident or condition developed while in your employ will be covered by Employee Compensation Insurance. Even if you feel that you don’t need to be covered as your employees are all office based it’s still important to be covered as office place falls and conditions are are very common place and you never know when a claim could be around the corner.