Every business needs to be insured. Not only is it the law, it’s an important way of protecting yourself and your company. But there are so many different types of insurance out there that it can be difficult to figure out what you need. Here is a guide to some of the different types of business insurance that are available.
Property insurance. This type of insurance protects the property your business is on, and the contents of the property. That means that if you own a store, your stock is covered. If your business is an office, your office equipment is covered. Both the physical location and the contents within it are protected against loss or damage.
Business interruption insurance. If the building your company is in was damaged or an essential piece of machinery was stolen, you might have to shut down for a few days. While property insurance will cover the damage, it won’t cover the losses you incur as a result of the business being closed. Business interruption insurance will cover this loss in profits.
Comprehensive general liability. This type of business insurance provides coverage for the injury or property damage of other people. For example, if a customer is injured on your property, comprehensive general liability will cover the damages.
Errors and omissions insurance. If you or someone who works for you makes a mistake that causes damage to a client, this type of business insurance will cover the losses. This could be anything from the client being physically harmed to them losing a sum of money due to the error.
Workers compensation. In most states, it is required by law that all business owners who have employees pay for workers compensation. With this type of insurance, you are covered if one of your employees is injured while working. This insurance will award them compensation, and your employee cannot sue you for damages.
Health insurance. This type of insurance helps pay for the medical expenses of you and your employees. While it is not required that you purchase this type of insurance, it is usually recommended. Not only does it keep you and your employees protected, but it keeps you afloat in a competitive marketplace; many people will not work for a company that does not provide health insurance.