Trillions of dollars pour into the United States insurance industry each year. The reason why insurance is such a hot ticket among both individuals and businesses is that the future is unpredictable and to stay afloat, your expenses need to be.
Looking at business owners specifically, depending on the sector you operate in, you may be running thin margins that can evaporate instantly if the slightest bit of adversity strikes. To protect against that, our team shares different types of business insurance that you should consider.
1. Professional / Product Liability Coverage
The United States is a litigious society. That makes it important that you protect yourself from a liability standpoint if operating within its borders.
Businesses that sell professional services (massage therapists) should have professional liability coverage. This coverage insulates from damages incurred as a result of malpractice.
Businesses that sell products should have product liability coverage that protects against damages brought on by faulty merchandise.
2. Worker's Compensation Insurance
By law, if you have people working under you, you need to pay into worker's compensation. Worker's compensation covers employees if they're hurt on the job.
If you have an employee that gets injured while working and do not have worker's compensation coverage, that employee can sue you for lost wages. You might also be prosecuted by local authorities.
3. Property Insurance
Any business owner that's working in an office space or retail location will want a property insurance policy covering them. This policy will protect you from liability if your operations damage the space you're leasing.
It's a commonly accepted fallacy that a building owner's property insurance will insulate you from damages in the event of an accident. In most cases, that's not true so do yourself a favor and get a commercial general liability policy of your own.
4. Commercial Vehicle Insurance
Any time you're using a vehicle for business reasons, you need to be covered by a commercial policy. Failure to do so can result in your insurance claim being denied in the event of an accident.
Most mainstream car insurance companies offer a commercial variant of their standard policies. You'll need to go to a specialist and obtain a truck insurance quote if your business requires the use of big rigs.
5. Business Interruption Insurance
Among the many different types of business insurance we have mentioned, no policy is more topical than business interruption insurance. Business interruption issuance fills in revenue gaps when your company is forced to close due to external adversity.
In most cases, this insurance policy would have protected businesses during recent COVID closures.
While you are too late to get covered for COVID, buying into a policy now will protect you from whatever comes next.
Investing in Different Types of Business Insurance Supports Your Continued Success
No matter how well you run your company, you're always prone to accidents and unexpected events. Don't roll the dice with your business' future. Invest in different types of business insurance that provide quality coverage to entrepreneurs.
Doing so allows you to open with confidence daily without worrying that adversity will force you to shut your doors.
For more advice on how to get the most out of your business, check out the newest content we have available on our blog! Visit the Insurance and Finance sections of the Bootstrap Business Blog right now.
