For many small business owners, the opportunity to start their own brand takes a lot of work. So, when you can turn all your hard work, effort, and time into something tangible, it’s understandable that you want to protect your investment from potential risks and liabilities. One of the best ways to mitigate these risks is by having the proper coverage.
In this article, we explore several policies that all business owners should consider, no matter the size of their organization. From a professional liability policy to commercial auto insurance, many policies can give your small business peace of mind in the face of unforeseen circumstances – keep reading to find out more.
Professional Liability Policy
Regardless of your profession, having a professional liability policy is a must, as it protects you and your small business against negligence and other claims initiated by your clients. Suppose your small business operates within a specific niche.
In that case, you will need a professional liability policy instead of a general one, as this is the only policy that protects you from negligence, misrepresentation, defamation, mistakes, malpractice, and much more.
No matter how careful you might be, a policy to protect claims of libel or slander is necessary since no business is exempt from making mistakes. Not to mention when they do, they can be costly and time-consuming to rectify.
But with a professional liability policy from providers like The Hartford, all your compensation fees and legal claims are handled. If you haven’t yet taken out a professional liability policy, consider visiting their website or contacting them directly for more details.
Employers’ Liability Insurance
Providing that you intend to have others working alongside you at your small business, you will also need employers’ liability insurance which will help protect your brand against employment claims and safeguard your employees.
Should any of your employers contract an illness or befall an injury because of the work they do for you, employers’ liability insurance will help you pay the damages, legal fees, and compensation costs that the affected employee is entitled to.
And with around 2.3 million people worldwide suffering work-related accidents yearly, it is wise to protect your small business against all potential threats from employees, from sexual harassment and discrimination to wrongful termination and lost income.
Business Income Coverage
Another valuable piece of insurance small business owners should consider is business income coverage, also known as business interruption insurance. For instance, if your business premises are situated by a river and, as a result, susceptible to flooding during the rainy months, business income insurance will help your business replace any lost income while you cannot operate.
It will also help you when you find new premises, as it will supplement your monthly business bills, operating expenses, and workers’ wages. This type of business insurance often comes included in a Business Owners Policy (BOP), depending on your provider, which combines business property and business liability insurance into one policy.
If this sounds ideal, some insurance providers even allow businesses to customize their owners’ policies by adding additional coverage to reflect your business’s needs better. This could include but is not limited to workers’ compensation insurance, data breach insurance, and commercial auto insurance – making it an excellent choice if you’re looking to bundle two or more policies.