When you choose to open a business, you need to keep in mind that you will be exposing yourself to a considerable amount of risk. One serious lawsuit could potentially put you out of business. Therefore, it is crucial for all businesses to consider commercial insurance. However, you will find some small businesses will try to keep their operational costs low by foregoing commercial insurance, assuming that they will take out a policy once they are profitable. The reality of the matter is that business insurance is prudent for startups as well as for large corporations. Knowing the different types that are available to you will enable you to determine what policies are most suitable for your needs and which will fit within your operational budget. Below are some of the different covers you should consider when contemplating business insurance.
Property insurance
One of the first covers that all business owners should opt for if they have physical premises is commercial property insurance. This cover functions to protect both the premises as well as all the assets inside. A misconception some newbie business owners may have is that commercial property insurance is only viable if you own the premises outright. The reality is that this insurance is prudent for both renters as well as owners. It will provide you with compensation if your inventory, equipment and assets are compromised due to vandalism, acts of nature, accidents and more.
It should also be noted that commercial property insurance is essential for people who work from home too. This is because your homeowner's insurance may not cover damage to your work-related property.
Public liability insurance
Another form of commercial insurance that is crucial for any business is public liability insurance. Some people tend to assume that this type of cover is only suited for business owners selling consumer goods. However, it is prudent for service providers too. This type of cover protects you in the event a customer experiences some trouble with one of your products or services and opts to sue you about it.
The cover functions to prevent you from having to pay out of pocket for different expenses such as property damage, medical bills and more. The cover will also ensure that your insurance provider will be responsible for the payment of any legal fees you incur, whether you go through a legal battle or a settlement process.
Contact business insurance brokers to learn more.
Share