You probably think that business insurance is something that only large corporations need to worry about because they have more assets to insure, but this isn’t the case. Every business, from a small start up to multinational corporations needs business insurance. Before you get business insurance, however, there are a few things you should know.
What is property insurance, and what does it cover?
Property is one type of business insurance that you should seriously consider. Not only does this cover and protect the physical structure (building) of your business, but also the contents of the structure, including furniture, stock, equipment, computers, etc.
What is errors and omissions insurance?
Also known as E&0 insurance, this is a type of business insurance that is typically held by people working in professional services such as lawyers and financial planners. This type of insurance protects against claims of professional negligence or failure to perform the services for which you were hired to do. Even if you did nothing wrong, you can still be sued. Errors and omissions insurance protects you.
Do I really need liability insurance?
No one likes to think about bad things happening but the truth of the matter is, just when you think the worst can’t happen, it sometimes does. If your business is sued, for example liability insurance can help you cover your expenses.
Do I need to have workers’ compensation insurance? This will vary by geographic location, but it’s quite likely that you are required by law to pay for workers’ compensation insurance. This will cover you in the event that one of your workers is hurt on the job. If your business has fewer than a certain number of employees you may not be required to have WC insurance, but it’s always a good idea to know for sure so you don’t find yourself in some hot water.
What is cyber liability insurance?
In our digital age, much of the day-to-day running of businesses happens online, from business meetings to the transfer of files and the completion of transactions. This makes businesses vulnerable to hacking and other breaches of privacy. Cyber liability Insurance helps cover the costs associated with such a breach, which can include reputation management and legal costs.
This is just the tip of the iceberg when it comes to what you need to know about business insurance. If you are going to run a business, whether it’s a small company or something much larger in scale, the most important thing to remember is that it is your responsibility as the business owner to know what insurance you need and how the various types of insurance cover you. Don’t wait until an emergency arises to find out you don’t have the right kind of coverage. Talk to an insurance company that specialises in business insurance to discuss your options.
Related: A guide to small business insurance – From liability insurance to property protection, small business owners must be aware of the measures to enact to protect their company. Here, we look at what cover is out there and which key policies should be considered.
