Businesses today need insurance for a lot of things, from liability to commercial vehicle coverage and more. There is usually a lot of confusion about the amount of coverage your business will need, especially as more businesses now work from home. Here is a useful list of the main types of insurance you will need for your business and why you will need this insurance to be successful and comply with local business laws.
1. Property insurance
Although it is not required, you should consider property insurance if you own a building, equipment, computers, or anything related to your business. This policy will protect you in the event of a disaster, such as fire, and acts such as vandalism and other crimes.
Another aspect of this insurance is business interruption and/or loss of income insurance, which will pay you to recover from the event that halted your normal business operations.
2. Officers and directors insurance
This insurance protects your business leaders against their actions that may affect the bottom line, operations or profitability of your company. Basically, if your manager or their officers end up in a legal situation as a result of their actions, this insurance can cover the costs related to the defense and, in some cases, the damages derived from those actions.
3. Homeowner’s insurance
You will need this insurance if you run your business from home. Depending on your mortgage, this may be mandatory, but it is essential that you notify your insurance firm if you have a business outside of your house. Without proper insurance, your standard insurance may not cover some accidents because they are related to undeclared work. Contact your insurance provider before you start running an out-of-home business to make sure it's compliant and covered.
4. Commercial auto insurance
If your company owns vehicles, they must be company insured, whether used by you or your employees. Whenever these vehicles are used to transport products, people, or equipment, they must be insured at your business by a commercial motor vehicle insurance policy. Insurance will protect you in the event of collision or damage.
If your employees use their own cars for work, you will still need a policy that protects the company in case something happens while the car is being used for business purposes. This is referred to as "non-owned vehicle liability insurance."
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5. Liability insurance
You need liability insurance, regardless of your business, even if your business is outside of your home. This insurance offers defense and damages in the event that you, your employees , or your products and/or services get involved in an accident that results in (or is supposed to cause) property damage or bodily injury.
6. Professional liability insurance
Often know as "errors and omissions" insurance, this insurance protects your business when there is a failure or improper delivery of promised services. It is important to have this kind of insurance because people just commit errors. If you or your company does not deliver on what they promised, this insurance will help make payment for defense and/or damage costs, helping you to assume responsibility without jeopardizing the future finances of your company.
Please note that this insurance is not generally offered in general liability insurance plans.
7. Worker's compensation
When owners or employees are injured on the job, compensation from workers ensure that they receive income to help them with their medical problems and leave for medical treatment. The Insurance also implies that employees do not have the right to sue their company, which is very important to business owners. It is mandatory in some places to provide workers' compensation insurance, so it is imperative to understand the legal requirements in your area for this insurance.
Whether your business is running out of your home, office, or on the road, you'll need various types of insurance to account for liability, incidents, and other accidents.