What Types of Insurance Are Best to Protect Your Business From Unforeseen Expenses?
Running a business requires lots of careful planning and strategic decision-making. Everyone knows why branding is so important for businesses and why you should focus on this. Without taking the time to plan correctly, it is hard for any company to grow as they would like. Life has a nasty habit of surprising us, which means there are some things you cannot always plan for. Unforeseen costs and expenses can often crop up to leave organizations with a real headache. As you were not expecting them, these costs will not have been factored into your thinking, and you may not have the spare cash to cover them.
So, what can any sensible business owner do about this? The best idea by far is getting the right types of insurance in place. That means when an unexpected expense shows up, you will be covered for the cost. But which are the best types of insurance to take out for this?
Workers compensation insurance
One type of business insurance which covers unforeseen expenses is workers compensation insurance. It provides a financial safety net for employers whose staff get injured at work. While this might seem like it will never happen to your company, workplace injuries can strike at any time and without warning.
When you take this cover out, both you and your employee have financial protection in the event of them suffering an injury. That is due to the policy taking care of lost wages and medical bills. For businesses, it can mean avoiding the need to cover the costs from the firm’s resources. It will also stop you from worrying about any compensation claim as this type of insurance usually guards against such events. Many U.S. states will also make workers’ compensation cover a legal necessity. If your state requires it, you must take it out or face a hefty fine for non-compliance.
General liability insurance
When it comes to the major types of insurance for business, this is perhaps one that most people know about. This policy will cover you if your services/products or an employee is alleged to have caused injury or injury to a person or damage to property while working or when a service or product is being used.
It is especially relevant for companies with staff working on a client’s property or when the public comes onto the business site. If a staff member accidentally reverses into a wall when arriving for a job, for example, this cover stops you from having to pay for the repairs or a new wall. These kinds of accidents are usually not predictable, which makes this insurance vital for all companies.
Commercial property insurance
This is another must-have when it comes to insurance for your business. It is applicable if you own the building your work from and have personal business property therein. Contents could be anything from your computers and printers to your tools, chairs, and desks. Such insurance is vital for guarding against fire, vandalism, and theft. All these events are unforeseen and can have a real financial impact on your business. By having business property insurance in place, you will have an adequate cover to rely on should any occur in your own company.
Professional liability
Next to general liability insurance, professional liability is the cover most people have heard about before. It can also be called errors and omissions insurance by some. Do not get it confused with general liability – they are two different things!
Professional Liability protection is there to provide defense and cover against claims that you or your staff failed to carry out the professional services rendered or did so improperly. It is also there to cover damage claims if clients say that your company’s professional advice led to financial losses for them. All businesses should have this, but it is essential for financial advisors, lawyers, accountants, and architects. Claims in this area can come out of the blue and give you no time to prepare for them. With that in mind, professional liability coverage is a must.
Getting the right insurance will safeguard your future
No-one can predict what will happen in the future, and this is why all businesses must have the right insurance cover in place. Without it, an unforeseen cost or claim for compensation could prove disastrous. The enormous financial burden that not having the insurance you need in place could cost might well cause your business to cease trading.
