Some of the types of insurances as well as when they are applied to your business has been discussed below:
General liability insurance
This kind of insurance saves the business from all kinds of property damage as well as third party injury claims. For instance, let’s say that you are owner of a store. You have spilled water on the floor and customer rushes in slips ending up in an injury. Your business will be considered to be liable for that injury. It will be liable to bear the legal costs as well as medical treatments. Without this general liability policy you will have to pay all kinds of costs. Depending on the situation, even a smallest incident may bankrupt your progressing business. This insurance covers variety of businesses and particularly the ones that have frequent interactions with the customers.
Commercial property insurance
General Liability Insurance safeguard your business from third party injuries, this commercial property insurance protects the property of the business itself. This includes the retail store location, physical office space along with the supplies and equipment. If you own a property or a building then you need to purchase this commercial property insurance which will cover the costs resulted from acts like theft and fire etc.
Workers compensation insurance
This insurance covers the lost wages and medical costs when an employee falls sick or gets injured at the job. At the same time, this insurance protects the employers as well under circumstances when employees sue the business for certain incident. Most of the times, we see this type of insurance to be mandatory, where a business has three or more than three employees working.
Liabilities for the cyber-attacks are covered under this cyber insurance. These are actually becoming really commons for all kinds of businesses including the smaller businesses. The stats show that 90% of the cyber-attacks affect the small businesses. If you have data of your customers like credit card information or personal information then you are at a risk for data breach which might actually cost you a lot. For instance, an employee by mistake clicks on something that reveals the confidential data of customers then it will be risky for you indeed.
Errors and Omissions Insurance
This kind of insurance is also referred to as professional liability insurance and it covers the business in case there have been made any mistake in the course of serving customers. It is kind of must have for the consultants and the professional service firms but it is applied to other types of businesses as well. If you are thinking if you need this kind of insurance or not then all you need to think about is if you serve the customers or not. Of course you do and therefore you need this type of insurance.
Directors and officers insurance
This kind of insurance covers the executives, managers and the board members of your company whenever they are sued for the decisions that they had made while working for the businesses. For instance, if an investor sues a company manager claiming that he breached the fiduciary duties or an executive saying that he has been terminated from the company in a wrong manner etc. If and when a company is bankrupted, vendors can sue the directors for the failure of the company in collection of debts. Under all these circumstances directors and officer’s insurance is beneficial.
Small businesses need these insurances in the same way a large or medium sized business needs. Do not compromise over these in any manner.