Protection is necessary no matter what your business type, whether you own an independent restaurant or retailer or rent out a commercial property so your employees have a space to work. No matter how large or small your business is, protection is always a safe and smart move; it ensures that when life happens, you don’t have to worry about keeping what you have worked so hard for afloat.
So you might be wondering not only what type of business you need but which ones are the most relevant to your specific business. We have composed a simple guide for you to refer to next time you are thinking about reassessing your business insurance or taking out a new policy. You can refer back to this simple guide when in doubt.
General Liability Insurance
This policy is the most common, and you will find it essential for every single business type as it covers bodily injuries to any staff or guests, property damage to a certain extent and personal injury that may have been caused on the property.
General liability is a great choice for businesses as it’s a plan that covers a lot of important things and it would be more damaging to not have this coverage. Look into companies that offer good terms and make sure you are aware of all and any loopholes.
Professional Liability Insurance
This policy is perfect for B2B types of operations where there are multiple contracts involved, so professional liability insurance covers any and all claims of negligence, malpractice, or breach of contract that are targeted by one of your existing or old clients. Without this cover, it can be an expensive and time-consuming process to defend yourself for something you might not have done.
This would essentially be for companies where the risk of suing is more evident than others, such as accountants, marketing firms, consultants, law firms and so forth.
Key Person Insurance
Key Man Insurance is essentially where you insure a specific individual or yourself in the case something happens to you that leaves you unable to attend work again. This insurance policy protects not only your business but also your family. This might only be relevant to large or small businesses that are very dependent on an individual or many individuals whose skill set isn’t immediately replaceable by the company.
While this might sound niche, it makes complete sense why a company may insure one individual compared to another, and it’s all about perspective and what-ifs. This is why only larger companies may consider this policy, as they have a lot more to lose and less time for them.
Business Interruption Insurance
It’s unfortunate but some successful businesses can’t grow or function as a company if they are constantly chasing invoices that haven’t been paid. It’s a difficult one to navigate and shouldn’t be something that businesses should have to dedicate so much of their time to. Outsourcing to insurance companies that pay the invoices to an extent and chase them for you has saved so many businesses from going bust and is something to consider as a larger company with large accounts.
Final Thoughts
There are so many insurance policies and types for specific businesses that you could consider. Just be sure to do your research, check your contracts before signing and stay protected at all times to ensure your business measures are running both smoothly and appropriately.