5 Types of Insurance Every Business Owner Needs October 27, 2016

5 Types of Insurance Every Business Owner Needs

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There are many types of insurance services that is being offered in today’s market, making it hard for new entrepreneurs to narrow down their choices. If you are a new business owner you might be overwhelmed, so we’ve zeroed in the basic policies you can consider in safeguarding your business:

  1. Property insurance

Property insurance covers any expense that might arise to repair or replace your computer, inventory, and other equipments needed for your business operations. This policy protects you from theft, vandalism, and fire but not from natural disasters such as floods and earthquakes.  If your area is within a flood prone environment, then purchasing a specific flood policy will be worth the expense. Whether your establishment is stationed at home or at a business address, you need property insurance as the most basic policy.

  1. Worker’s compensation

Accidents may happen whether we like it or not, and since employees are the workforce of our business it is crucial to have a compensation policy to protect them from any expenses caused by injuries. Worker’s compensation varies from state to state, so be sure to get a policy that is best represented with your line of business. It will not only safeguard your employees, but it can also protect you from legal complications should an accident occur.

  1. General liability insurance

This is the insurance policy that can cover a customer’s injury or damage to property resulting from a service or product that you are selling. Big companies tend to insure their products with general liability insurance especially if products are mass produced; one damaged or faulty item put the risks of a consumer in danger and so it is crucial there is coverage to settle these items. If you have a small business and are planning to expand to a bigger audience, then this policy is your stepping stone in ensuring that any case of defect can be handled smoothly.

  1. Data breach insurance

Also known as cyber liability insurance, this type of policy covers any breach of data or information in the business owner or consumers’ part. It is undeniable that almost all of our transactions can be handled online, it’s easy but also poses a threat in terms of security of our accounts. By purchasing data breach insurance can mitigate the costs of hacking, and settle any legal responsibilities resulting from the information leakage.

  1. Home-based business insurance

Since almost all transactions can be done through cyberspace, business proprietors of today have little need for actual office spaces. A home-based business insurance covers business proprietors from any theft, vandalism, or fire that may happen to their property. Any item that is necessary for the operations of your business should be declared and insured so that it’s easy to start should a disaster happen. Moreover, this type of policy also covers you from liability with clients and your employees.

These are the basic policies you should consider to save yourself from possible headaches. But of course, try to talk with your agent fro a more thorough and in depth examination of what your type of business really needs. Investing in any business is a gamble, so be sure to have an insurance policy to help you start over.