Whether you are just starting your business, or it has been up and running for a while, it is important to protect your business with the appropriate types of insurance. A trusted banker, a knowledgeable lawyer and a reliable insurance agent are all important members of your business team. If you don’t want to outsource this responsibility, you’ll have to take the responsibility of becoming a financial guru on your own. Because the nature of insurance spreads the risk to various other businesses, you will probably be pleased to learn how little some types of insurance can cost.
If your company sells or delivers product to the public, you need product liability insurance. This type of insurance protects you and your business from any damage, illness or injury that your product may cause. IRMI explains it as, protection against financial loss arising out of the legal liability incurred by an insured because of injury or damage resulting from the use of a covered product or out of the liability incurred by a contractor after a job is completed (completed operations cover). If your business product is a food, beverage or supplement and it can be linked to an illness in one or more persons, you may face a ruining liability. If your company sells or rents equipment that is associated with an injury, you could face large payments. It may be difficult to visualize software being responsible for damage, but if your company produces or distributes apps or software products, consider the protection offered by product liability insurance.
Professional liability insurance will protect your business if a customer or client suffers financial harm from a product or service that your company has produced or sold. This type of insurance is also called professional indemnity insurance (PII) and errors and omissions insurance (E&O). Insurance Center Associates explains that if your business focuses on selling services, this coverage protects you and your business against, errors, negligence, or omissions, as well as malpractice.
Business Renters Insurance
If you rent the property in which you operate your small business, then business renters’ insurance guards you against unforeseen circumstances. When you sign your lease, check what insurance your landlord has on the building, parking lot and surrounding grounds. You can insure your office furniture, equipment and inventory. Financial Web explains that many believe that large corporations or big businesses no longer need business renters insurance, but that’s not true. Any business of any size, no matter how big or small, needs renters insurance if they are renting any or all of a building.
Business renters’ insurance can also cover your liability if a customer, client or employee is injured while visiting your shop. You can also purchase insurance in the event your business must close because of a disaster like a fire or flood. Relocation insurance coverage would cover costs if you unexpectedly have to move to another location.
The proper insurance coverage will allow you to have peace of mind, and you can focus on growing your business, meeting with new customers and developing your employees.