Types of Insurance that You Might Need for Your Business

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All business owners must assess the risks they are facing and choose their insurance accordingly, to protect their business. As an entrepreneur you expose yourself to certain risks. A single lawsuit or catastrophic event is enough to wipe out a business. You have the obligation to protect your customers, your employees and your income if you want to succeed; don’t think about the costs, because they are much higher if anything bad happens. There is a wide range of types of insurances that help protect businesses from these dangers.

Business interruption insurance

The operations of a business will most likely be interrupted if a catastrophic event occurs. While the operations are interrupted the staff can’t work and the business will suffer. Business interruption insurance helps businesses in case of disaster by compensating for the lost income during the harmful events. This insurance is mandatory if your company requires a physical location to proceed with the work.

Professional liability insurance

This type of insurance covers a business against negligence claims due to harm from failure to perform or mistakes. Each industry has a different type of professional liability insurance. For example, medical professions have medical negligence insurance, while lawyers have errors and omissions insurance. The most shocking 2015 medical negligence claims were heavily advertised in the media lately. If you’ve heard about them, you have probably noticed that when it comes to medical businesses, the compensations consist in outrageous amounts of money. As such, insurance is mandatory for medical practitioners, as nobody wants their career to end because of a single mistake.

While the recent news regarding the 2015 medical negligence claims highlighted a general lack of interest on behalf of the medical practitioners, the truth is that anyone can commit a mistake. The main reason to have professional liability insurance is that it covers negligence, violation of good faith, fair dealing and misrepresentation, as opposed to the general liability insurance that only responds to property damage, advertising injury, personal injury or bodily injury.

Product liability insurance

Product liability insurance is mandatory for businesses that manufacture products to sell on the general market. As a business owner you may face claims that the design of your product is unsafe, the warnings or instructions are defective or even that the products has flaws or it malfunctions. This type of lawsuit could take you out of business and the damages awarded in such claims include economic damages, medical costs and compensatory damages. Protect your business and get product liability insurance before it’s too late; the stakes are too high for you to take such risks.

Vehicle insurance

If your business uses vehicles to function, it’s time to look for vehicle insurance. Company car insurance isn’t the same as commercial car insurance. Commercial car insurance is for cab drivers and people who make deliveries. Depending on what type of policy you choose, vehicle insurance can cover property damage caused by the insured, third parties like cars and people, fire, theft and the physical damage to the insured vehicle.

October 2022