Business insurance incorporates several kinds of coverage such as property liability, privacy liability, auto liability, or a general liability. A business insurance company that has varied types of coverage is preferred over another with fewer types. This is because it gives your company more room to insure more assets.
For certain businesses like amusement parks or healthcare related industries, it’s a necessity from the get-go, but what if you run a freelance business or engage in low-risk work? Is business insurance a requirement?
While it may not seem so from the outset, as your business grows and takes on additional risk, business insurance quickly becomes a must. The problem is that many smaller businesses ignore the issue of insurance until it’s too late.
Here are some of the main types of business insurance you might consider for your enterprise:
General liability insurance is intended to provide protection from things like property damage or personal damage. It can protect you from most lawsuits that would come to your business.
If you manufacture or sell a specific product, product liability insurance can protect you from things like defects or design flaws that lead to personal harm.
Property insurance can protect you from things like theft, vandalism, and some types of natural disasters as well as major repairs that may need to be done in the future.
Workers’ compensation insurance protects your employees should one of them be injured on the job. For the most part, this is a legally required type of insurance and requirements vary by state.
Business interruption insurance will give you a payout if your business is unable to continue operations for a period of time.
If your company owns vehicles, you’ll need policies to protect those vehicles, just like you would a personal vehicle. There are several other types of insurance your business could need, including protection from specific natural disasters, and key person insurance to keep your business running after unexpectedly losing a key employee.