The contemporary business environment is akin to the Amazon jungle where only the toughest survive. With globalization, slow economic growth and other emerging challenges, you need to be overly innovative to stay afloat. One way of staying put in this capricious business environment is by buying business insurance.
Insuring Your Investment
Investing in insurance is a savvy business strategy that protects your investment in case disaster strikes. It also protects the interests of your co-owners and other stakeholders in your business, should any misfortune jeopardizing operations arise.
Take for instance if there is a fire in your business premises and everything is lost. Without insurance coverage, this would mean your hard earned investment literally goes up in smoke. However, with the right type of coverage, you will have some peace of mind.
You only need to make a claim and your business insurance provider will cater for damages. What’s more, you can avoid costly lawsuits from your employees or the public in case accidents occur within your business or are caused by your products and services.
Types of Business Coverage
With this hindsight, it is obvious that a business coverage is non-negotiable, especially in the modern competitive enterprise environment. Here are some types of business policies your business needs:
Property Insurance
According to the Insurance Information Institute (III), this is one of the most important types of cover your business needs. It covers all your physical assets in case of common perils such as fire, natural disasters and other misfortunes. You are compensated for the value of these assets, and even operating costs, as you try to get back on your feet.
Liability Insurance
Modern society is incredibly litigious and if you find yourself on the wrong dock, you need protection in form of liability insurance. This policy pays damages to third party in case of injuries or death resulting from your products or services. It also covers damages to other party’s property in case you are found liable in a lawsuit.
Workers Compensation
This business insurance is mandatory and pays for medical bills and lost wages in case an employee is injured or dies in the course of duty. In most cases, it does not matter who was at fault as long as the accident occurred in your facility.
Commercial Auto Insurance
This coverage is for all autos owned and used by your business. This helps pay damages to third parties in case of injuries, property damage or death caused by your business vehicles.
While these are the main business covers, there are other specialized ones including umbrella policies, professional liability, employment practices liability coverage and terrorism insurance, among others.