Although entrepreneurs start a business to meet their clients' needs and make money, they expose themselves to a number of risks even before hiring the first employee. For this reason, it has become essential for business owners to get the right insurance plan to protect their companies from theft, lawsuits and catastrophic events. These issues can wipe out a business even before it gets the opportunity to start making returns or profits.
So, what insurance policies does your company require? Well, there are various types of business insurance plans you can consider depending on your niche. Some of these plans are outlined below.
Property coverage
Do you own or lease your business space? One of the primary aspects you need to consider is property insurance. This plan is designed to protect all your equipment, furniture and inventory against theft, fire or storm. But, it's essential to note that natural events like earthquakes and floods aren't usually covered in this type of insurance plan, so if your business premise is located in an area that's prone to these risks, you'll need to get a separate plan.
Professional liability coverage
Another insurance plan you'll need to protect your business is professional liability coverage. This policy safeguards your company from suits lodged against the company over negligence claims. It's essential to note that there is a difference between this policy and the standard liability insurance plan. Each industry has unique issues that will only be addressed if you have a separate professional liability policy for your work. The insurance plan is ideal for insurance agents, consultants, lawyers, accountants, hair salons, spas, technology providers, among others.
Product liability coverage
Product manufacturers require protection while doing business just like service providers, and that's where product liability plans come in. In fact, it's mandatory for the companies to get this insurance plan if they want to sell their products in the general market. This insurance plan doesn't mean that you should produce substandard products — you are required to take every measure to ensure all the products that get to the market aren't inferior.
But, if any issues occur and your clients sue the company because of the damages your products may have caused, this insurance plan will provide protection so you don't shut down your business or suffer financially. Note that product liability insurance plans do vary depending on the industry so your policy must be customised to suit your unique requirements to provide the much-needed protection.
To learn more, reach out to a business insurance broker today.
Howdy! I'm Luke and I would like to offer everyone a warm welcome to my blog. I am 24 years old and I work and live in the great city of Perth, Australia. I recently graduated from university and I am just at the beginning of my career in landscape design. For the first time in my life, I have some money so I wanted to make sure I was using the best banking products which would give me the best rate of return when I invested my money. There are so many different types of accounts out there, that it really confused me. Thankfully, my dad put me in touch with a great financial advisor who was able to talk me through the options. I have since visited the same advisor several times to ask about the best way to invest my money.