Business Insurance 101: Cover All Your Bases
Starting your own business is risky. But you do not have to risk losing it all. With the right type of business insurance, you can get the support you need when things go array.
The business world is unpredictable and things really can go wrong when you least expect it. But when you have insurance, you can help recoup any devastating losses that you are going through and actually see light at the end of the tunnel. From the theft of your business property to the actual destruction of your building, there is a range of coverage options for you to consider.
When it comes to researching business insurance, you likely have seen a whole lot of options. That in itself can be overwhelming. So we are outlining everything there is to consider when it comes to business insurance. When you know what to look for and what you need, it will be a lot easier to actually pick the right one for you.
The Coverage to Look For
A quick scan of business insurance options will make you realize that you can get really comprehensive coverage in one plan. Not only will your physical business be protected from natural disasters like floods or earthquakes, but you will equally be protected if your employees steal from you or are dishonest.
The best business insurance plans also protect your actual business income too. If you hit tough times and no longer have the funds to actually keep going, some insurance plans will also step in to help ensure you can stay afloat during the hardship.
In general, you want a plan that covers all potential risks you face as a business. That way you always have the coverage to fall back on and know that you really have not lost it all.
Things to Consider
When it comes to figuring out what bases you actually need to be covered, you first want to assess what you may actually need help with. If you have an actual business building, you want insurance that covers physical damage. If you employ other people, you want insurance that covers the risks that come with having a team. If you have intellectual or digital property or assets, you want to make sure that those will remain protected.
The list can go on and on when it comes to things to consider. So ultimately you need to make the best decision for you.
Types of Business Insurance
When you are considering all your options, assess if any of these various policies make sense for you.
1. Business Property Insurance
When you get business property insurance, it means that you will get coverage for the actual building and physical assets within. Usually, you can also add your business income to this policy. If you are ever in a situation where you have lost your profits, then you can get financial support to try to prevent any further loss of income.
With this type of insurance, you want to make sure that you understand the details of your coverage upfront. There are multiple factors that will be considered before it is determined how much coverage you will ultimately get in various scenarios—including the size of your company, how many years your company has been in operation, where your company is located and the industry that your company is in.
2. Business Life Insurance
This type of insurance covers the heart of your company—your team. What happens if one of your most valuable employees has a family crisis and can no longer do their job? Or finds themselves in a situation where they can not perform their job?
This type of insurance helps support your team during hardship and extends to protecting their own personal assets, covering the costs if you lose them for a while and also protecting you and them against any debt. It is usually a different policy from standard business insurance, but still equally important to have.
3. Liability Insurance
Many industries put their employees at risk. So you will want to make sure your business and your team are both protected should any accidents at the workplace occur. This can range from spilling coffee on your colleague to getting into a serious machinery injury. This type of coverage will support accidents that happen both on and off the work site and ensures that those involved can get medical treatment and also have the appropriate time off work to recover.
Every business is unique, so of course, there will be no one-fits-all option for business insurance. It is up to you to decide what you need coverage for and what makes the most sense based on your budget, your industry, the size of your team, and the potential things that could go wrong.
But regardless of what option you do choose, know that business insurance will be able to come in and save the day when things get extra stressful with your business.