While the idea of running your own company can be liberating and exciting, it does present with various risks. One of these risks is the issue of being exposed to different events that could cause bankruptcy. Before you even begin to trade, it is important to consider the potentiality of losing everything and put preventative measures in place. Business insurance policies are available to help protect a company against all types of dangers, and this article will provide information on the different types of policies.
Regardless of whether you are leasing a business space or own the property, it is recommended that you purchase property insurance. This type of business insurance covers inventory, equipment, and signage in the case of theft, vandalism, fire or floods. Unfortunately, natural disasters are not often covered by property insurance policies. So, if your area is prone to earthquakes and floods, it may be worthwhile looking at a separate policy.
Professional liability insurance is a type of insurance offering overage for the company against any negligence claims. It should be noted that all industries present with different types of professional liability insurance due to the differing needs of each sector. To ensure you receive the most relevant option, it is recommended that you speak with the insurance agent.
Product Liability Insurance
If the company produces products for sale on the market, it is advised that you obtain product liability insurance. Product liability insurance protects the company from any lawsuits based on damages by one of the company’s products. While each business does take measures to produce safe items, there will be one or two items that can cause harm to a user and have this coverage will help avoid bankruptcy.
Workers’ Compensation Insurance
When a staff member has been hired, it is essential that you obtain workers’ compensation insurance as part of the business insurance policy portfolio. This type of insurance policy will cover the employee’s medical treatment, disability needs, and death benefits if the worker is injured or dies based on a workplace accident. Without this type of insurance in place, even the smallest of workplace employee accident claims could be costly.
Business Interruption Insurance
If a natural disaster does occur and the business’s operations are interrupted, the company will more than likely experience a loss of income. Business interruption insurance is beneficial because it compensates a company that has lost any revenue during catastrophic events. It should be noted that this insurance policy is only available to businesses with physical locations for operational needs, such as retail stores.
Home-Based Business Insurance
The majority of entrepreneurs begin their companies in their homes and, unfortunately, a homeowner policy does not cover home-based businesses. If you are running a business from your home, it is recommended that you speak to the insurance agent for additional coverage to the homeowner’s policy. This will offer coverage to any company equipment or inventory in the case of theft, fire, flood, or natural disasters. To know more about us visit the website at https://procominsurancecompany.com/business-insurance-florida/.