The money it takes to keep your business running strong creates a volatile situation for any operation. Balanced finances are crucial to success in any industry, and accounting isn’t the only way you can protect your investments.
Keep your business safe, and delve into the right types of insurance. Here is a brief look at some of the most important insurance policies you should always have to protect your financial investment as a business owner.
Workers’ Compensation Insurance
In the U.S., workers’ compensation insurance is required by law in nearly every state. If you do not fulfill your responsibility to carry workers’ compensation, you could find yourself in some substantial legal trouble.
Beyond the legal responsibility, every business owner should feel it’s their ethical duty to protect their employees. If someone is injured on your watch, it makes sense that you would find a way to make it right.
Product Liability Insurance
If you run a business that creates and sells a product to the general public, then you need to hold a valid product liability insurance policy at all times. You can never 100 percent assure perfection in your product.
Even if you do everything in your power to make certain that every product that comes out of your business is perfect, mistakes and defects still happen. If someone is injured by a defective product, you will thank yourself for purchasing your product liability policy.
Professional Liability Insurance
Professional liability insurance will help protect your investments from that rogue employee. You can’t watch everyone at all times, and sometimes your professionals won’t do the right thing.
If one of your professionals grossly misrepresented your product, you could be responsible for the legal repercussions. Keep your professional liability insurance up to date, and leave those worries to someone else.
Business Interruption Insurance
Business interruption insurance is meant to help ease the financial burden of a forced shutdown of your business operation. If a hurricane runs through town, you will likely have to close up shop for a while.
Those times can result in huge financial loss, but your investments will be safer with business interruption insurance. Your policy will help you pay wages to employees, and work towards getting your business back to normal.
Property insurance is more helpful to those who run a brick and mortar business, but you may also benefit if you are running your business from home.
Your property insurance policy will pay to replace any of the “property” you use to complete your operations, should a burglary or theft occur. Just as you would insure your home with homeowners’ insurance, property insurance will protect your business.