Taking out the right kind of insurance is one of the first things a new business owner should do. Making sure you’re covered against all the risks from the beginning is crucial for the long-term health of your company. With the amount of options available to you, though, the process can be daunting. However, you can get a combination of various insurance such as Business Owners Policy Insurance (BOP), which can cover general liability, commercial property and business interruption insurance. You can avail BOP insurance through companies equivalent to Thimble to cover the majority of issues related to business ownership. As for other types of business insurance, here’s what you need to know.
Contents insurance refers to protecting the goods inside your premises. While a simple concept, there are some intricacies you should be aware of. For instance, many business owners working from home assume they’re covered under their standard home insurance policies. While some home insurance policies can include protection for home-based businesses, these are often limited to low value claims. This means you won’t be fully compensated should any of your expensive technological equipment be damaged. Even a new start-up can easily start to amass assets of considerable value so it’s highly recommended that you take out specialist cover from companies like Catlin.
This type of insurance is something that most employers seem to dismiss, but is actually one of the most important areas that you need to be covered in. Put simply, workers compensation insurance provides benefits to employees who have become injured or ill in the workplace, as a result of the job that they are required to carry out. Cash benefits, healthcare benefits, or both, are provided to workers who suffer an accident or illness in the workplace. Most states across the United States of America, except for Texas, require business owners to maintain workers compensation insurance throughout their business. Understandably, if the employee accepts the benefits they will receive from their workers compensation, then they no longer have the ability to sue their employer for any further damages. Most people decide to do this as it will cover medical costs and their salary repayment. Having this type of insurance can benefit a lot of employers, so make sure you do your research in this area before making a final decision.
Public liability insurance can be used to help you pay for any legal fees that could occur if a member of the public suffered an injury, or worse, on your premises. For instance, this could be something as simple as a customer slipping on a wet shop floor. You would be accountable for situations like these if the customer wished to press charges, which could be likely especially if the area wasn’t appropriately sectioned off. The money you receive from the insurance pay-out can also be used to help compensate for the loss of earnings you may occur as well as any damages awarded to the claimant if you were found to be at fault in court. While public liability insurance is not required by law, it is commonly required by many service providers your business may work with, such as local authorities.
If your business supplies products to the general populace, it’s your reasonability to ensure the safety of these items. This could not only result in legal action for your own business, but also the retailers you distribute to. Different types of goods are governed by various health and safety laws so it’s crucial that you know the specifics of your industry. Failure to abide by these, even once, could harm your brand so significantly that no wholesaler would be willing to risk their reputation by dealing with you again.
Getting the right insurance is just one of the things you’ll have to worry about. For more tips on running business, take a look at our post on the top mistakes to avoid when getting started.