With the economy thriving right now, many business owners are viewing the immediate future as an ideal time to expand their operations and push their company into high gear. Regardless of how prosperous you’ve been lately, however, your business could still succumb to sudden failure in the event of an unexpected emergency, particularly if you lack adequate insurance coverage. Given that many modern businesses are deeply under-insured, it’s worthwhile to consider the various types of insurance which may save your company from financial jeopardy when it inevitably arises.
Here are 5 types of insurance your business needs, and why you should consider investing in them.
- General liability insurance is imperative
There are many different types of insurance, but general liability insurance is the most imperative for your business to possess if you want to endure for long in the marketplace. General liability insurance is often considered “baseline insurance,” meaning it’s the sort of coverage you need if you’re lacking all others. As the name implies, general liability insurance is relatively broad, and will cover you in many generic circumstances which befall many individual entrepreneurs and budding businesses.
General liability insurance is what keeps your business safe in the event that a client or contractor finds themselves injured thanks to negligence on your part. If a customer suffers bodily injury when walking into your store, for instance, they may sue you because you failed to provide them with a safe environment. General liability insurance, which is sometimes called business liability insurance, will cover your out-of-pocket costs that derive from that customer’s lawsuit.
Knowing the ins and outs of general liability insurance is crucial if you want to be a successful small business owner. Out of all the insurance types on this list, general liability insurance is by far the most important for the vast majority of businesses.
- Employee health and wellness benefits pay off
The next type of insurance your business likely needs is employee health and wellness benefits. This is because your company needs to attract the most talented workers around if it wants to prosper, but luring in the best workers takes more than hefty salaries. As a matter of fact, many professionals determine where they’re going to work based on the benefits provided by the company in question rather than on the salary they’re offered. After all, a colossal salary is worthless if you suffer an injury and are left to pay off all your steep medical bills by yourself, thereby bankrupting your household.
Employees who have access to health and wellness benefits are also substantially happier than uninsured workers who don’t have company-wide coverage to act as a safety net if a terrible tragedy befalls them. Read up on the advantages to health and wellness benefits, and you’ll soon realize that they’re an essential part of attracting talented employees and keeping your workforce in tip-top shape.
- Commercial auto insurance could save you a fortune
If you have a personal vehicle and drive around on a regular basis, it’s almost certain that you have auto insurance which will protect you in the event that you’re involved in a collision. What few business owners understand is that commercial auto insurance could end up saving their business empire in the way that personal auto insurance saves your household from severe debt following an accident. If your business has a fleet of vehicles it utilizes to earn a profit, commercial auto insurance is essential if you want to enjoy financial stability for long.
Knowing when you need commercial auto insurance isn’t always easy, but it’s better to read up on the facts than to live in ignorance and suffer for it when a collision with a company car inevitably occurs. Like car insurance in Fort McMurray, commercial auto insurance will go a long way towards helping you sleep soundly at night with a fleet of your company’s vehicles on the open roadways.
- Workers’ compensation insurance is essential
Few businesses grow to the point of profitability without the help of a dedicated workforce. It’s only natural, then, that you keep an eye out for the professionals who have made your commercial dreams a reality. This is why workers’ compensation plans are essential, as they’re often the only thing standing between your employees and financial jeopardy if they’re suddenly rendered incapable of working. If a worker is injured or killed in the midst of your everyday business operations, workers’ compensation will guarantee that they or their surviving family members are adequately taken care of, which simultaneously fulfills your responsibilities as a good business owner while ensuring you won’t be sued.
- Business interruption insurance can’t be discounted
If your business operates in an area that’s prone to flooding, hurricanes, or other inclement weather patterns, it’s only natural that you invest in business interruption insurance. As its name implies, business interruption insurance will keep your company safe if you find yourself suddenly incapable of conducting business. If the spot where your business is physically located is suddenly rendered inaccessible thanks to terrible weather, business interruption insurance will kick in and provide you with temporary income while you work hard towards re-establishing your operations.
If a lawsuit or catastrophic event inhibits your business from generating revenue, business interruption insurance may be the one thing that keeps your doors open. Keep that in mind, and soon your business will be more secure than ever before.