What Does Business Insurance Cover?
Why You Need Business Insurance
Although there are many policies and it can get confusing, knowing what each covers ensures you’ll find the best insurance company to suit your small business needs. There are many instances in which you could need business insurance and not having it could result in high costs. If you have an employee that gets injured in the workplace, your insurance will cover their healthcare costs. Sometimes issues with your place of work mean you’ll lose money, but insurance can pay for this.
The most popular insurance is a Business Owners Policy, which is a type of business liability insurance. It covers property, liability and your income, so it offers a lot of benefits.
The Basic Policies
If you’d prefer to get a number of policies instead of one comprehensive policy, then the following are the ones you must consider.
Business property insurance will protect your business and property. This includes any repairs to the structure of the property and cover for your personal items. Everything from computers to stationery is protected under this policy.
If you have to close your business, then you need Business Income Insurance. This covers you in case of a fire, flood and many other situations.
Professional Liability Insurance is one of the most popular types of business insurance available. It covers your business if problems arise when providing a service. Liability insurance also pays for your legal costs in some circumstances.
Employee Based Business Insurance
Employment practices liability is vital for your business because it deals with claims from employees. The insurance policy covers all the costs if an employee sues you for unfair dismissal, discrimination or an injury caused in the workplace.
Fidelity policies help to maintain trust between parties when they enter into a contract. It has many benefits for both the business and the client. Taking out a policy means both parties must agree to complete the work, or face legal costs. It also protects you against employee theft and fraud. Think carefully if you need fidelity insurance, but it can be very beneficial in specific circumstances.
Home-Based Business Insurance
Working from home doesn’t mean you won’t need business insurance. In fact, self-employed individuals are more at risk from losses and often have lower incomes. While a small business can usually afford repairs, self-employed individuals cannot and should invest in business insurance.
If you have supplies such as computers, stationery, and equipment you should look at the home-based business options. Working with customers also means you should make sure you have appropriate business insurance. Protecting yourself from potential costs now can save you a lot of money in the future and ensures your customers know you provide a reputable service.
Things to Consider
Business insurance doesn’t cover everything, but there are many things it does offer. In some cases, your policy won’t cover floods or damages caused by severe weather. This is also the case when you let a customer store their goods at your property. Unless they’re insured, insurance companies won’t replace them.
Getting an insurance policy for your small business will save you a lot of time and money. However, make sure you choose one that benefits your business. If you don’t need a policy with all aspects included, then don’t purchase one. Choosing a comprehensive policy might be easier and more cost-effective.