When you are running a business, be it small, medium or large, you will need to have a bunch of insurance policies to protect yourself and your business if something were to go wrong. Things do go wrong in every business. Let’s say you hire an employee and provide him or her with a vehicle for business activity. You already need at least three different insurance policies here. You will need to insure the vehicle so that if it were to get involved in an accident, you don’t have to bear the costs. If the employee gets injured, again a Workers Compensation Policy is a must and so on. Here are some important areas where you should go for insurance policies connected to your business.
Secure Your Business Place
One of the first business insurance policies you will have to look at is your commercial property, whether you own it or have rented it out. You would have furniture, office equipment, etc. This is no different from the policy you would have taken for your residence. If there were to be a fire or other calamity and you lose everything in your workplace, the insurance policy will return at least a major portion of your loss.
Professional Liability Insurance
If you are running a business in the United States, offering professional services to your clients, you must have this Professional Liability Insurance. If you wish to understand this policy, consider that you are an architect and have offered some professional advice to a client on constructing a house. When the house gets completed, the client feels he or she has been cheated since the final execution of the work was not carried out properly. If the client sues you for compensation, your Professional Liability Insurance will bail you out. If you can establish that you acted in the best interest of the client, you may escape without paying even a cent.
General Liability Insurance
Many small and medium businesses prefer to go in for General Liability Insurance. As the name itself suggests, this type of business insurance policy helps you protect yourself from multiple types of claims against you/your business. In the normal course of work, employees can get hurt or injured when they are working within your premises. The employee enjoys certain legal rights by which he or she can lodge a claim on you for compensation. The General Liability Insurance covers these and many other situations.
Business insurance is an unavoidable part of your business expenses. The premium you pay is far less than what you will end up incurring if you did not hold that policy. There are many cases where the state you are operating in insists on insuring. Study them as well.