Every business is required to hold certain types of insurance no matter the type of business they operate. This is to protect both the business operator and anyone connected with the company, whether an employee or customer.
Among the required insurances are policies for general liability, which will cover legal issues and costs arising from injury, claims of negligence, slander law suits, or property damage; worker’s compensation, which will cover medical costs in the case an employee is injured on the job; auto insurance, to cover a business car or service vehicle; and commercial property insurance, which will cover any property a business owns like an office or store to cover damage from vandalism, fire, storms, or even riots.
Consider Your Options
There are many types of insurance, though, that are not considered a requirement but that can protect against almost any type of hazard. Depending on the kind of business you operate, here are four types of optional business insurance you may want to carry.
First, businesses that offer a service of any kind may want to think about obtaining professional liability insurance. This type will help if a client claims they have experienced a financial loss because of something you did or did not do — an error or omission. Professionals of all sorts, including doctors, lawyers, accountants, and any consultant, will want to consider this to cover cases of malpractice or negligence.
Umbrella coverage is just what it sounds like. This is an all-purpose policy to cover you if something comes up that will exceed the amount you already have in coverage.
Some Policies can go Hand-In-Hand
Internet insurance is the newest form of home-based business insurance. There does not seem to be anything more safe than doing business from the comfort of your home or in the ether of the Internet. However, at home, your home owner’s insurance will not cover losses to a business operated there. Also, the Internet is home to viruses and hackers. You also could need insurance as protection in case of Internet-specific suits like software copyright infringement or accusations of false advertising.
Business interruption insurance can go hand-in-hand with life insurance for your company. Both will protect against unforeseen events that could cause a disruption in business. Interruption insurance protects against major down time caused by a natural disaster or a major construction project. Life insurance will protect your family and business partners against the loss of your talents should the worst happen. It also may be helpful when applying for a loan, since it can be used as collateral.
Get Professional Help
When considering optional business insurance, you should consult a reliable insurance agent, perhaps one that a colleague or other business associate knows and trusts. They will help guide you through the various policies and costs to help you find the combination that will bring the protection your company actually needs.
The final cost of your total insurance coverage package will be as unique as your business. Shop around to various insurance companies and be honest about all aspects of your business to get the most qualified quotes. Be sure and review your business coverage at least annually and whenever major changes occur.