Types of Insurance

High risk, get higher profit returns. Every businessman is pretty aware of this statement and the risk involved in the business. Risk refers to any mode of exposure a company or organization faces to a factor that will lower its profits or degrade one’s business. It can arise in any way such as loss of product, worker’s death or illness, loss of property, whistleblowing or occurrence of any natural calamity. To protect yourself from unexpected damages, it is always advisable to get your insurance done.  

However, the selection of the right policy is an overwhelming situation for those who have never purchased the coverage before. But, before purchasing an insurance policy you must be thorough with these two factors:

Factor consideration before purchasing insurance:

Understanding your legal obligations

Know your industry’s risk

Prioritize coverage over business insurance cost.

Read your business insurance thoroughly

Types of business insurance policy:

There is a wide range of insurance types for protecting businesses against risks and unexpected circumstances. Some of them are:

1. Professional liability insurance:

The type of risk involved negligence arising in failure to perform duty or irreversible mistake that leads to damage to the business. However, you can claim this coverage for your business by addressing a customised written policy for a business.

2. Property insurance:

The risk involved under this coverage is loss of property (i.e equipment, machinery, furniture, inventory and signage etc.) due to fire or theft. It also includes property space whether owned or leased. You can get coverage if the above mentioned occur in your course of business.  

3. Worker’s compensation insurance:

Workers are an asset of an organisation, so whenever an employee is hired worker’s compensation insurance is vital. This will cover the benefits like medical treatment, disability and death amount coverage. In case an employee gets injured or dies in the event of employment the insurance amount is disbursed to his/her family.

4. Home-based business:

There are some businesses which are carried without getting commercial premises or similar to that. Some businessmen carry their business from home which is not included in the homeowner’s policies. In such a case you need to get an insurer for additional insurance cover if there is a loss of equipment or property.

 

5. Product liability insurance:

If your business deals in the manufacturing of products for sale in the market, you must get product liability insurance. It is important even if your business provides quality safe service. Damage to one product can invite lawsuit in the picture. Hence, the PLI is very useful in such a case.

6. Vehicle insurance:

The risk involved is vehicle damage used for business purposes and not for personal use. The insurance should be done against the third party for the claim in case of the occurrence of a vehicle accident. Always make sure the vehicle should be only for business use and not for personal usage as separate insurance is available for personal vehicles.

7. Business interruption insurance:

This insurance is for businesses that operate from a fixed business location like a store, factory or building. Lost income due to unexpected events is compensated by this kind of policy. If it occurs on the regular course of business.

The process of buying small business insurance can be confusing, but it doesn't have to be if you choose an accurate plan. By investing some time upfront to research your obligations and risks, and by working with a licensed Insurance agent, business owners can feel confident they are receiving the right coverage for their business from a top-ranked carrier at an affordable rate.