Businesses need to be insured against all the risks they are exposed to in their day-to-day operations. Insurance helps to eliminate uncertainties about the future. After all, if anything bad happens, the insurer will compensate you accordingly. Choosing insurance companies like Smart Business Insurance can help you run your business comfortably knowing that every possible liability that may arise is covered. It is important to note that there are many types of insurance policies that businesses need. That is why it is always recommended for business owners to consult experts in the industry with the aim of finding the Full-Proof Business Insurance for their business needs.
Business Insurance Policies Every Business Needs
i) Commercial Property Insurance
Any business that has been operational for a couple of months or years has assets. This includes furniture and fittings, office stationery, inventory, electrical appliances and computers. The business premise is also an asset. Business owners need to purchase a commercial property insurance policy to protect all the assets belonging to the business against vandalism, fire damage, burglaries, flooding, storm damage, hurricanes and other types of events that may lead to property loss or damage. A suitable policy should cover every possible risk that may affect business property.
ii) Commercial Vehicle Insurance
If you own or you’ve leased commercial vehicles to help you in your day to day running of the business, it is crucial you purchase commercial vehicle insurance. This is crucial because you do not want to incur losses if your commercial vehicles get into an accident, get stolen or when they are vandalized. A suitable policy should provide coverage for damage or loss of vehicle as well as the cargo it carries.
iii) Liability Insurance
This is perhaps the most important type of insurance policy for businesses. A business can survive a fire incident or a robbery because the losses are quantifiable. When it comes to injury lawsuits, however, the losses can be quite substantial. Imagine being forced by the courts to pay hundreds of thousands or even millions of dollars to a customer for pain and suffering and physical injuries they experienced after slipping and falling within your business premise. This may force you to close shop. If you have liability insurance, however, you will not need to worry as the insurer will pay the legal fees needed to mount a strong legal defense, pay the damages awarded by the court and any other expense that may arise from the lawsuit. This means that your business will be left unscathed.
iv) Workers Compensation Insurance
This is a basic requirement in most high-risk industries. It covers injuries sustained by employees in work-related accidents. Workers’ compensation pays all medical bills related to a work-related injury and offers temporary disability benefits for the entire period the injured worker will be away from work. In case of a fatality, workers compensation insurance also offers death and funeral benefits. This means that injured workers will not need to worry about working to make ends meet while injured. Similarly, they can be given the best medical attention without worrying about medical bills piling up. This is a must-have if you are in an industry that records many work-related injuries.
How to Choose the Full-Proof Business Insurance Policies
There are many factors that you will need to consider when searching for the best business insurance cover. After all, different insurers offer different types of policies. Below are the key factors of consideration during your quest for full-proof business insurance:
1. Liability Coverage
You should not purchase a policy before you check and confirm that all the necessary liabilities are covered. When you consult an expert, all the liabilities your business is exposed to can easily be identified. You can then purchase a policy or multiple policies that offer coverage for all those liabilities. You do not want to have a policy that leaves you exposed to certain liabilities. Be sure to read all the inclusion clauses to know what is covered.
2. Coverage Limits- Full-Proof Business Insurance
Just because all the liabilities are covered, doesn’t mean you can have peace of mind. After all, the coverage limits may be insufficient. Imagine having $1 million worth of public liability coverage, only to be exposed to $20 million in liabilities after an injury lawsuit is decided against your business. This will leave you with a liability exposure of $19 million. Therefore, you need to look for a policy that provides sufficient coverage for all the liabilities in question.
3. Exclusion Clauses
Insurers can be cunning at times. After mentioning that certain liabilities are covered, the exclusion clauses can render that claim baseless. After all, exclusion clauses basically explain the circumstances under which certain liabilities may not be covered. Therefore, you will have to read all the exclusion clauses of a Full-Proof Business Insurance policy before you make a decision.
The cost of an insurance policy is a key factor of consideration. This is because you do not want to spend an unreasonable amount of money on premiums. Just because you require insurance coverage doesn’t mean that you should fork out an arm and a leg to get covered. Therefore, you will have to compare premiums before you commit yourself.