Every ambitious person enters the business world with high hopes of everything turning all right, however, putting your livelihood on the line because of your optimism is a poor business practice. Of course, you can significantly cut costs on your business by not getting an insurance, yet, this idea is nothing short of dancing on thin ice. Keep in mind that as a first-time entrepreneur, the chances of everything running smoothly are virtually nonexistent. This is why you need, at least, these five types of insurance to keep you safe.
Regardless if you are the owner of the commercial space in which your office is situated you need to take a property insurance. The greatest difference here is in the cost and tax deductions that come from this, seeing as how a non-owner might end up paying 15 to 20 percent more. On the other hand, some areas are simply so exposed to the risks of floods and earthquakes that it becomes irresponsible to avoid looking for adequate property insurance. Still, this doesn’t mean that catastrophe-free areas should be spared of the need for adequate property insurance. Think about it, a fire-hazard isn’t necessarily location dependent, yet it is one of the major problems you should look out for.
Worker’s compensation insurance
Another important type of insurance that your business should definitely get is the worker’s compensation insurance. Its main purpose is to cover medical treatments and benefits to the family should the worst come to pass. The greatest problem with worker’s compensation insurance is the fact that it’s the first thing that gets a budget cut for businesses in low-risk industries. What they fail to realize is that there’s no such thing as being 100 percent safe and a single instance of miscalculation or misfortune may be enough to run your business into the ground. At very least, even these low-hazard businesses should look towards alternatives like provider toolkit NDIS and in this way keep their team covered no matter the circumstances.
Commercial auto insurance
If your company owns a vehicle, you should seriously consider commercial auto insurance. The issue with commercial auto policies is the fact that you’re getting an insurance for a vehicle which may change several drivers over the course of a year. Sure, you may know for sure that every single person behind the wheel of a corporate car is a reliable driver, however, can you guarantee the same for someone you’re about to hire in a month or so? In some cases, there’s no possibility of such a scenario, yet, this is why you should customize your insurance policy instead of sticking to one-size-fits-all solutions. Of course, this isn’t the case if your employees are using their private vehicles for corporate purposes.
Product liability insurance
Perhaps the most important type of insurance for your small business is the liability insurance, seeing as how it heavily focuses on the question of your day-to-day business. Mistakes get made even by some of the most experienced experts in the field. Unfortunately, this is something that even the best organization and most optimized work policies can’t improve. This alone is the reason enough why every company needs a product liability insurance, as well as a disclaimer that is so well conceived that it protects you in most of these situations. Some, nonetheless, are still quite skeptical about the amount of the legal protection that comes from the disclaimer.
Business interruption insurance
As a business, you have to acknowledge a fact that there may come a time when you are no longer able to work with your full capacity, if at all. For instance, imagine a scenario discussed in a first section where there’s a massive catastrophe that prevents you from wrapping up the project you started several weeks before. A local disaster may cause your office to become inoperable, whereas this particular project may not be dealt with through collaboration tool or entrusted to remote workers. This is why you need a business income insurance or business interruption insurance.
The most ironic thing about the insurance is the fact that it’s an investment that you’re making in hopes of never being forced to capitalize on it. After all, it’s better not to have your company flooded than to have the damage covered by insurance. Nonetheless, wishful thinking can only get you so far and it’s always better to be safe than sorry.