Owning and operating your own company or business involves a lot of different things to consider. One of those things is owning insurance to protect yourself and others around you from a variety of different financial risks and responsibilities. ‘It is not easy to know what types of insurance you need, as different companies need different coverages. Here are some insurances that your small business should consider.
General liability
General liability insurance covers general accidents or situations with faulty products. Companies and businesses have different risks, depending on their products and services. Their production and manufacturing areas also provide risks for things like injury to occur on company properties. You need to use online resources to help in regards to providing information on what you should know to understand the differences in insurance coverage. For example, employees and workers can be at risk for many minor and major injuries suffered in accidents. These incidents may involve, but are not limited to, injuries suffered from slips and falls due to negligence. These types of incidents involve holding one party, the owning and operating party with the responsibility of the well being of their employees and customers, and come into play when they fail to do so. It is important that many companies have the basics of general liabilities covered for their day-to-day operations.
Professional Liability
In addition to on-site, environmental risks that put workers and employees in a vulnerable position, there are also other risks that companies need to protect against. For companies that do not sell physical products or create and manufacture such items, they may be liable to claims that involve services they offer in terms of advice or consultation. If a company advises another business to practice certain measures, and that business then suffers losses, the possibility of that business holding the consultation company responsible for their advice resulting in damages and losses. For any company that provides services outside of the retail of a specific product, it is important that they take the necessary steps and seek out protection from professional liability.
Commercial Insurances
Commercial insurances are in place to protect businesses and companies from legal claims in more professional settings. These insurances mirror those of personal insurances, but are scaled for business and company purposes.
Property Insurance
Similar to protecting your home and any property you own, it is important to provide your business with property insurance to protect it financially against hazards and risks to your buildings and properties. This includes protection and coverage against things like fire, flood, vandalism, and theft. Similar to protecting your home, these policies protect your business from environmental and external risks that you cannot also predict and protect for. Additionally, many of these protections are in place for when there is no other party that you are able to hold accountable and seek financial reimbursement from. For any company that is operating in a physical space, property insurance is important.
Auto Insurance
In addition to having coverage for your company’s property, you want to also get automobile insurance if you or your employees operate company-owned vehicles or operate outside of your company premises. This also includes vehicles that are not necessarily owned by the company but are used in the transport of goods and services during your operating times. Essentially, this permits your personal car to be insured if you use it for your small business uses, and then can translate your repair costs and operating costs for the vehicle as company fees in the event of an accident. It is important to consider this type of insurance coverage if your business does a lot of deliveries, or provides services off company grounds.
Criminal Liability
Businesses are not perfect, and as prepared as you are for everything, you have to consider crime and criminal liability in your operating insurances. Owning and operating a business requires you to hire and work with many employees. Ideally, all your employees are practicing sound and lawful procedures, but if an employee chooses to act with criminal practices, this can put your entire company in hot water, and be accused of aiding in such criminal offenses. This is particularly important to consider as your company grows larger and you are unable to monitor all your employees as carefully. There are many legal fees to consider with lawyers, cases and even the loss of time operating your business if you get wrapped up in these criminal cases at a company level. If your company cannot afford the time or financial impact, you need to consider this type of insurance when operating a business.
It is important to do all the necessary research prior to starting up your company. Seeking legal advice or having one on staff will help you factor in what is necessary for your company’s operations. It is best to consider all your potential liabilities beforehand and be prepared for anything, otherwise, you run more financial risk if you are uninsured and unprepared.
