So, you’ve decided to purchase business insurance. But which policies should you actually get? Here we’ve made a list of the top 8 business insurance policies you need to absolutely have when running a company:
1. General liability insurance
If you are working under a budget and need an all-encompassing insurance policy, then General liability insurance is ideal. This policy covers a variety of risks that businesses experience. This includes:
• Property damage at the customer or third-party site.
•Medical expenses for bodily injury experienced by the customer or third-party.
•Expenses for advertising libel & defamation
However, this insurance doesn’t offer protection or coverage in the event your employees get injured at work or if your equipment is damaged or stolen.
2. Errors and Omissions insurance
Sometimes, customers’ expectation of a product, service or experience is very different from our own. When this happens and the offering does not match their expectations, they can sue the business for omitting to perform the service as expected. Or they may even claim that you were negligent to their needs. Such lawsuits can be very costly.
The Errors and Omissions insurance (also called professional liability insurance) is designed to protect businesses against claims of errors, omissions and negligence to fulfill promises. But this E&O insurance doesn’t offer coverage for any physical damage or injury.
3. Worker’s compensation insurance
If your business involves manual labor, you are mandated by law to have Worker’s compensation insurance. This policy is designed to help you finance the medical expenses, rehabilitation expenses, payment to an employee for time off work and any legal claims that arise out of the accident, illness or death of an employee at work.
This policy is necessary whether your employee works on your premises or the premises of a third-party or customer.
You can read: Reasons Why You Need Business Insurance
4. Property coverage insurance
This particular business insurance offers coverage for any property damage you have experienced as a result of natural calamities such as fire, flood, earthquakes, etc. This insurance also covers non-Act of God events too and which damage your property. Here, property refers to your business premises, commercial vehicles, tools, equipment, machinery, etc.
A few insurance providers also offer riders third-party property coverage. Here, your insurance will cover any damages that occur to the property of third parties, when you’re performing work.
5. Stolen tools insurance
When your employees are busy at work, they can’t be expected to keep an eye on all their equipment. Sometimes, thieves can steal your machinery or tools and this can cause immense problems for your business. Not only will your work be set back because of the absence of the tool, but you will need to spend more money on acquiring these tools again.
The stolen tools insurance can help you get coverage for any tools and equipment that were stolen from you or get lost during transit between your offices and the site.
6. Commercial auto insurance
This is really important business insurance to have if you use commercial vehicles for your trade. This insurance is a two-in-one policy. It not only covers any damage that occurs to your commercial automobiles, but it also offers financial protection to you if your commercial vehicle damages another property or vehicle.
Usually, most insurance providers offer commercial auto insurance for all types of situations – whether its negligence, accident or Act of God.
7. Product liability insurance
This is insurance that you need to have if you are a manufacturer, supplier, stockist or retailer. This insurance protects you in the event:
•Your product is faulty.
•Your product hurts the customers/consumers.
•Your product doesn’t meet the legal specifications.
•Your product has damaged a third-party property or vehicle during transit.
•Your product doesn’t come with usage instructions or warning labels.
8. Business interruption insurance
This insurance is usually added as a rider to any other business insurance policy you purchase. This insurance offers you financial coverage to make up the income you lost, due to unanticipated business interruption. This could be due to a natural calamity or a technology issue or political-economic circumstances. However, the only exclusion that this policy has, is for pandemics and situations arising out of bacterial/viral medical conditions.