Business insurance is one of the biggest areas for new entrepreneurs that is easily forgotten and difficult to get to grips with. It’s important that business owners understand the different types of insurance that are out there, so that they can ensure they have the right ones in place for their company. The thing is, it can be confusing! There are many types of insurance out there and as a business owner, you need to discern what your own company will need. If you are a business that has a limited budget, you could take some advice about the types of insurance you will need so that you know what you can spend.
When you do your business plan for your new company, you should decide early on how much of your budget you can dedicate to business insurance. Any freelance employees that you sign to your books should also have the right insurance, such as https://www.kingsbridge.co.uk/sector/banking_and_finance_insurance.html and as a business, you should ensure this is in place before you sign them on. We’ve put together a guide on seven different insurance types so that you can make a more informed decision on whether you need some or all of the insurances available.
Property Insurance: Most people don’t realize that they require property insurance whether they are running their business from an office or from home. Property insurance covers more than just the basics, it covers your business electrical equipment, tools and other business-related items in the building. This is covered if there is damage in emergencies like theft or fire. This type of insurance does vary by provider but for the most part, you can be covered for loss of business income in the event of a fire that puts you out of action for a while. Disasters that happen naturally like earthquakes and hurricanes are normally not covered with property insurance, and will incur additional charges. However, this is definitely worth it, especially if your business is based in an area that is prone to natural disaster.
Worker’s Compensation: Employees that you hire need to be covered in the event of accidents on the job. Worker’s compensation insurance can cover you in this case, and you could find yourself in a lot of legal trouble if you don’t have the right coverage.
General Liability Insurance: This one is more common for the businesses that have customers coming in and out all the time. Where worker’s compensation insurance will protect your employees, general liability protects others. If you have a customer in your business who is on the receiving end of an accident, you could leave yourself open to liability and lawsuits.
Vehicle Insurance: Companies that own several vehicles like trucks or lorries, or even taxi firms need to have vehicle insurance that covers every single vehicle on the books. Having company cars is also another reason to have a blanket insurance to protect the employees and the company if there is an accident.
Cyber Liability Insurance: We live in a world of overwhelming data being streamed every single day and as your staff will have their personal data stored digitally, you need to protect it. This includes clients and customers where you store their personal information. Data breaches are happening more and more, so ensuring you have the right insurance to cover you if there is hacking going on will mean that you aren’t going to be in trouble if there is a data breach.
Professional Liability Insurance: This is a little different from general liability insurance, as this provides damages for services that are improperly rendered. Professional firms should all have this type of insurance for additional coverage to the general liability policies.
Life Insurance: Most people have this privately, but life insurance is always a smart insurance to have as a business owner. Your family will not be burdened with business debt or get tangled in the affairs of the business when there is a life insurance policy that can pay out on your death. As a company owner, you have to protect yourself as well as your business.
As a new business owner, you will be faced with a lot of difficult decisions about your business but insurance shouldn’t be one of them. You should ensure that you cover yourself and your employees at every given opportunity so that you can grow into the future and not have to worry about things that could, and sometimes do go wrong. There are many things you cannot control, but insurance is one of them.