Running a business can be pretty overwhelming, as you’re constantly managing things like making products, getting supplies, reaching out to customers, and handling payroll, among other tasks. Amid all this hustle, it’s essential not to overlook business insurance, which acts as a safety net for your assets if something unexpected happens.
There are several types of business insurance you might want to consider, including:
**Home-Based Business Insurance**
If you’re working from home, you might think your homeowner’s insurance covers your business too. However, that’s usually not true. You’ll typically need to add extra coverage to your existing policy for your home-based business.
**Professional Liability Insurance (Also Known as Errors and Omissions Insurance)**
This type of insurance protects you if a client is harmed due to your mistakes, negligence, or errors while providing services. For example, doctors call this malpractice insurance.
**Product Liability Insurance**
If your business produces physical products, you might need this insurance. It covers you if your product has a defect that leads to injury or death. The level of risk associated with your product determines how much coverage you need. For example, a company that makes baby products would need more coverage than one that makes blankets.
**Commercial Property Insurance**
If you have a separate workplace with your own equipment, you’ll likely need commercial property insurance. There are two main types:
1. **All-risk policies:** These cover a wide range of possible issues, such as fire, theft, and vandalism.
2. **Peril-specific policies:** These protect against risks specific to your business location, like flood insurance for businesses near the coast.
Commercial property insurance protects against physical damage and loss of income, including loss of business capital and equipment.
**General Liability Insurance**
This insurance is crucial if your business faces accidents, injuries, or negligence claims. It covers costs from legal judgments or medical liabilities.
Although buying multiple insurance policies can seem expensive, they offer comprehensive protection for your business. The larger and more valuable your business becomes, the more important it is to have the right insurance coverage.
In the end, investing in the right insurance policies is cheaper than dealing with a lawsuit or liability claim without any protection. So, make sure you arrange proper insurance coverage for your business without delay.