Hi, my name is Elizabeth, and I have been running my own business for years. Over the years, I have had a lot of different businesses. I have had home-based businesses, a catering company and several brick-and-mortar shops. Through all of those financial excursions, I have had to buy different types of insurance policies. I have even had to make a few claims. As a result, I have learned all kinds of unusual things about business insurance. If you want to learn about insurance coverage and what your business needs to be protected, take a look at this insurance blog. Thanks for reading and enjoy!
When starting your own business there are a number of things to take into consideration, but having the right insurance in place before you begin trading should be at the top of your priorities list. Some types of insurance are required by law, while others will depend on the type of business you operate and the environment you work in. Organising your business insurance can feel a little overwhelming, so here's an overview of 3 types of insurance every business should have.
Public Liability Insurance
Public liability insurance is designed to protect you or your business in the event of injury to or death of a third party as a result of your business practices. You may need to make use of this type of insurance if your run a food business and your food makes a customer sick, or if a customer falls over something in your business and sustains an injury. Public liability insurance will also cover some or all of the legal costs associated with a public liability claim.
Workers Compensation Insurance
Workers compensation insurance covers claims made by members of staff as a result of work-related injury or illness. It provides a level of protection to you and your employees, and it must be in place regardless of whether your employees work from business premises, operate a mobile service or work from home. The amount of cover you must provide varies between states, so check with your local business bureau or insurance provider to ensure you are meeting the minimum requirements.
Professional Indemnity Insurance
Whether you provide products or services, professional indemnity insurance is designed to offer protection when you don't meet your contractual obligations or you are found to be negligent. For example, if you are contracted to provide custom-made furniture or build a home and you don't fulfil the contract on time, or if you give inaccurate advice to a customer using your products or services and they experience detriment, any claims made will be handled through your professional indemnity insurance policy.
While these three types of insurance are compulsory, there are several other types of insurance you may want to consider depending on the type of business you operate, such as cybercrime insurance, product liability insurance or loss of income insurance. Your insurance broker can recommend the types of insurance that you should consider based on what your business is and where it operates.
For more information, contact a commercial insurance broker near you.
Share23 August 2022
