You never think an accident will happen, until it does. If you aren’t covered by insurance, then you’re asking for trouble.
Unfortunately, not every business has the coverage they need. Reports show that 75% of companies in the United States are underinsured by 40% or more.
Insurance is a tricky subject, so it’s hard to know what all you need. This post will help you get started.
Below are five types of business insurance that you need to know.
1. Property Insurance
It doesn’t matter if you own your building or if you’re only leasing it. You need to have property insurance to cover all the assets you have on-site.
Your property insurance will cover you for the common types of disaster in your area. If any of your property is damaged, you’ll be able to replace it through your insurance company.
2. Workers’ Compensation Insurance
Before you hire your first employee, you need to get your workers’ compensation insurance in order. This type of insurance is required in many areas, so you can’t get around buying it.
Even if you work in an office building, accidents can still happen. This insurance will cover you whenever that happens.
3. Product Liability Insurance
Are you in the business of producing products for the market? If so, then you can’t get around buying product liability insurance.
No matter how much you fine-tune your manufacturing process, mistakes are always a possibility. This means you always have to be on the lookout for injuries that come about because of those mistakes.
Product liability insurance will help protect you when that happens. Your coverage will pay out damages that are a result of harmful products.
4. Captive Insurance
If there isn’t an insurance plan that ticks all the boxes you want, captive insurance is a great option. With most insurance companies, you have no say in the business. Things are a bit different when it comes to captive insurance.
With this type of insurance, the insured companies are the owners of the insurance business. The companies who take part in it can dictate the benefits and profit when the insurance company does well.
5. General Liability Insurance
When your business works with other people, there is always the chance of something wrong. People get hurt, and medical bills start piling up. This is where general liability insurance helps.
Your insurance will cover anybody who suffers harm as the result of a business failure. The terms of this insurance will vary based on the industry that you’re in. You’ll need a customized policy that fits with what your business does on a day-to-day basis.
Learn These Types of Business Insurance
You can’t always predict when something bad will happen in your business. If you aren’t insured when it happens, then your entire business may be at risk. Make sure you learn the types of business insurance, so you know what your company needs to stay safe.
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