Setting up a business is crucial for all those people looking to become entrepreneurs. Most people start by establishing small businesses and then work hard to achieve their dreams. However, several business owners and managers are unaware of the different insurance policies they can buy to protect their businesses from larger losses.
Read on to get acquainted with some business insurance policies every small business should have:
- General Liability Insurance
General Liability insurance is one of the most important and possibly the best insurance that your business needs to flourish in the long run. Be it delivering products or services, there are many scenarios when claims may be initiated against your firm for property damage or bodily injuries. Running a company can be made easier when you are secured by liability insurance.
An example would be when a customer accidentally slips on a wet floor irrespective of the sign placed there or when a delivery truck accidentally breaks your neighbor’s wall. They may make exorbitant claims but the insurance plan can pay the necessary amount while safeguarding your investment.
- Workers’ Compensation
A worker’s compensation policy is essential when you have dozens of people working in your company. It doesn’t matter how many people you employ but whoever falls sick or meets with an accident during work hours, you can safely pay for their medical expenses which will be covered by your policy. Workers’ compensation protects you and your employees against high hospital bills.
- Property Insurance
Property insurance is a generic term and there are many sub-categories to it including flood insurance, natural calamities coverage and so on. When you purchase the policy, you can make claims as per your insurance, so if there is damage to your property or your equipment gets damaged, you can claim the amount from the insurance. General Insurance Companies in India suggest if you live in a flood-prone area, flood insurance will help you in the long run.
- Business Income Insurance
The advantage of having a business income insurance is that it will cover any unexpected losses suffered by your business after a natural calamity or a disaster. It is usually added to the property insurance policy. The insurance allows a business to maintain the same financial standing as it had when it was running optimally. It typically covers profits, fixed costs, commission, extra expenses, etc.
- Equipment Insurance
Equipment insurance is especially necessary for industries that invest thousands of dollars in machines, and other equipment. Your insurance will cover the costs in case of failure, repair costs within their warranty period or out of warranty replacements. Make sure to read individual policy guidelines before choosing the best insurance policy.
Apart from the above-mentioned policies, you can also choose commercial umbrella insurance, commercial auto insurance and unified business owner’s policy based on your business requirements. However, it is recommended to use the services of an insurance provider in India to get the best insurance policy for small business owner rates for the most comprehensive coverage possible for your enterprise.