Unexpected problems can occur to businesses of any size. Having the right business insurance can enable your business to continue in spite of them; otherwise, it could spell the end of your business and set you back financially for years. Business liability insurance is designed to protect you against lawsuits, helping your business to continue. One study, reports Businessknowhow, reveals that as many as 40 percent of small business owners do not carry any small business insurance.
Cover All Aspects of Your Business
One policy that will cover all aspects of your business is called a business owners policy. This policy combines all types of coverage into a single package, letting you save money on the overall costs. You can select the types of coverage you want, which may include liability, property, business interruption insurance, vehicle coverage, and crime insurance.
The prevalence of natural disasters seems to be increasing. Besides earthquakes, hurricanes are doing more damage than before. In addition to wind damage, they can also create extensive flood damage. Together, they could destroy your building, equipment, vehicles, and possibly shut down your business for months. Property insurance can cover the loss but you will likely need specialized coverage for it.
Keep the Money Flowing
In the event of a disaster, business interruption insurance can provide you with money to keep paying the bills. If your property is damaged and you cannot use it, the money from this coverage could enable you to set up another temporary site quickly, with equipment and materials, and enable you to keep your employees on the payroll.
Computer Hacking Incidents
Businesses are being attacked by hackers more frequently and often find that their computers and data are being held for ransom. Data breach insurance may help cover the cost involved in ransomware cases, the cost of finding the breaches, limiting the damage, and helping protect your company’s reputation.
Errors and Omissions Insurance
When you are a professional, there is a possibility that you could become liable for a mistake involving a client. Somethings may not even be your direct fault, but if it affects a client negatively, you could be held liable. Errors and omissions insurance, also called professional liability insurance, will cover you and your employees (it may not cover temporary employees) against claims involving negligence or poor quality work. It also provides coverage for professionals who provide advice.
Protection from Business Crime
Covering your business against business crime may require getting a special policy because it is often not included in a general business policy. Buying this type of coverage can protect you in the event of fraud, robbery, theft, embezzlement, and more.
Coverage for Home-based Businesses
If your business is located in your home, you can get coverage for it. Visitors could trip on your sidewalk and hold you liable or a fire could destroy your computers and other equipment – which are often only partially covered by a homeowner’s policy. It could also be used to cover any lost inventory.
Contracts May Demand It
Some contracts that you have with clients may demand that you have some type of insurance coverage. It may be required if you rent property, have borrowed money, or if some planned events do not occur as planned.
Having the right kinds of business insurance can also help you relax. It will relieve you of the pressure of wondering about the “what ifs” and let you focus on your daily business matters. Your employees will also be able to relax more, too, knowing that they have an employer that is prepared if a disaster occurs.