Individuals that are looking to start a business are often surprised by the various risks that they will need to protect their enterprise against. Having insurance for your business can be an effective form of protection against a range of potential hazards, but there are a few particularly important types of insurance that you should consider purchasing for your business.
Product Or Service Related Liabilities
For businesses that sell products, it can be possible for manufacturing errors or design oversights to create a potentially dangerous product. If individuals are injured while using your product, they may be able to file a lawsuit against your company. By having product liability coverage in place, you will be protected against risk. Enterprises that provide services should still consider investing in the service equivalent of product liability, such as errors and omissions.
There are some types of insurance that will likely be legally required of your business. For individuals that will have employees working for them, it can be a legal obligation to invest in workers compensation coverage. This coverage will protect your workers in the event that they are injured while working for you. In addition to being a legal requirement, it can also provide you with important benefits against the costs of treating your injured employees. If you are legally required to carry this insurance and you fail to invest in it, you may be liable for the medical expenses of your workers along with major fines from the government.
Business Interruption Protection
Accidents and disasters can be an unfortunate risk for any type of business. When a disaster or major accident damages the building, it could force the business to close its doors until repairs are able to be made. Being closed for a long period of time can be a devastating blow that many businesses may never fully recover from experiencing. Business interruption coverage will provide your company with at least a portion of its normal revenues during the time that it must be closed. This will help your company to survive this period.
A general liability policy can be another vital form of protection to have. These policies can help to protect you against individuals that suffer injuries while on your property. While you may assume that his will only be important for businesses that have heavy foot traffic, it can actually benefit almost any business due. For example, it may be possible for a vendor or major client to be injured on your property, and this policy will help to shield you from these damages.
Contact a company, like Barrett Consulting Group Services LLC, for more help.