How essential insurance is for any business cannot be over-emphasized, nor can the risk and losses incurred when paying for coverage you otherwise did or do not need. In as much as taking insurance cover for your company is a necessity, it is wise and strongly recommended that you seek the expert advice of an independent, experienced, and reputable insurance agent.
The many insurance providers in the market necessitate the need to do thorough research as you shop for the best policy providers. The nature of your business will determine the type and number of insurance covers you need to take for your company. The insurers will lay out various policies stating the significance of each to your business, but you should aware of which insurance covers will meet your need and which are of no help regarding protecting your company’s interests.
Regardless of your business’ insurance portfolio, it is wise to review it bi-annually especially if yours is a startup because it is bound to change rapidly in the first few years. In keeping with this, below is a checklist of what you need to consider when getting the insurance covers for your company:
- Can you or your business shoulder the risks or afford the losses you face for not being insured?
- What is the legal coverage as required by your local laws, Federal and State law?
- What policies does your company need based on the specific items covered and excluded by each insurance policy?
- Does the cover include a co-insurance clause and if so does the policy give sufficient coverage?
As you consider things mentioned above from Procom Insurance Company, you also should be sure that the covers you take do not overlap or duplicate one another and that you also have adequate coverage for certain location-based risks such as floods, storms, and earthquakes.
The Types Of Insurance Covers To Take That Safeguard Your Business’ Interests
- Property Insurance
If you or the company owns or leases the building or workspace, it is wise to have property insurance. The cover protects the business’ assets that include the furniture, equipment, inventory, and signage among other this. You can have the policy safeguard your company from events such as fire, storms, or even burglary. Keep in mind that that standard property insurance policies will often not cover mass-destruction events such as earthquakes and floods; you need a separate policy of these.
- Automobile Insurance
Taking out an automobile insurance policy for your vehicles will only include that or business use, but you can talk with your insurance provider to have the policy reverse so that it does. The law dictates that every vehicle on the roads should have insurance coverage. For companies with one or more cars, taking comprehensive automobile insurance will cover the vehicle as well as the third-party involved in an accident. The drivers, if employed by the company, can enjoy sufficient protect from road accidents by their personal insurance covers. The comprehensive cover, however, ensures that the company will not face hefty penalties if unemployed delivery personnel is injured in a road accident.
- Worker’s Compensation Insurance
If the business has employees, then you are required by most states to ensure that you provide them with workers compensation coverage. The policy safeguards your business from pricey claims issued against it by the staff members who may have incurred injuries from an accident while at work. Most companies may want to forfeit this requirement on the basis that it is expensive; however, the much your business will spend on this insurance depends on the kind of work performed and the risk level of accidents as well as accident history. Employee classification is one way to ensure that you get the best insurance rates based on the duties or work-area of each worker.
- Professional Liability Insurance
The policy is also known as Errors & Omissions (E&O) insurance. It protects the company against claims of negligence on the part of the business and its owner resulting from mistakes and failure to execute their respective obligations. In most case, this cover will not have a one-size-fits-all policy because commerce industries differ and thus each has its unique set of concerns. As such, every sector will need a particular type of customized policy that will meet its needs.
It is wise to keep in mind that man is to error, no one is perfect. It is possible to offer a product or service knowing that it provides a solutions or meets a need, but as perfect as you may think your product or service may be, it may lead to financial losses on part of your customer or client and this can often result in lawsuits against your company by the customer or client. By taking the professional liability cover, you will safeguard your business from such a scenario. Companies that can benefit from such insurance coverage include those that are into architecture, engineering, software development, accounting services, investment advisory services, and management consulting among others.
- Business Interruption Insurance
Loss of revenue is a potential risk that every business faces even though measures are in place to prevent such an outcome. But take the scenario where the company was unable to operate for a certain period because repairs were underway after a fire or floods and this resulted in the loss of the main suppliers. The employees will need their salaries, and the company has to meet its tax obligation even as it counts its losses due to the disaster. Taking a business interruption cover to ensure that the company can still stay ‘financially afloat” after such catastrophic events.
The above covers are regarded as the essential types of insurances that you should consider taking to protect your business from various risk. It is important to be aware of the “finer” details of the policy so that you can be satisfied that it provides sufficient cover. Having the right insurance coverage will safeguard your business’ interests and help avoid significant financial losses and legal issues. Always consult with an insurance advisor to help you know which policies to take that will help protect your company.