Every business needs insurance policies. No one can ever predict the future and no guarantee in the world can ensure the safety of your business and employees. This is why you need to apply for several insurance plans that will be a huge difference-maker if and when something bad happens. Every business has its risks and you’re willing to carry on regardless, but it is wise to protect yourself and your interests along the way. Read on to learn more about the types of insurance you’ll need for your business.
Workers’ Compensation Insurance
Every business needs a workers’ compensation insurance policy to cover any medical bills, treatments, disabilities, and possibly death benefits for employees injured on the job. Any accident could suddenly happen in the workplace and your company will be legally responsible and liable for it. Not having this type of insurance can mean a lot of lawsuits and disputes that can tarnish your company’s name.
Also, it’s one of the most ethical insurances a business owner can and should have because people have rights and you need to make sure every employee under your payroll is safe and protected. You might not fully prevent an accident from happening, but it’s reassuring for your employees to know they will be financially protected if anything does occur.
Professional Liability Insurance
The professional liability insurance policy is referred to as the errors and omissions insurance (E&O) and your business needs it. No matter where your company operates, you’ll need protection for your operation no matter the line of work you’re in. Make sure you get a decent quote. Canadian laws state that every business is accountable for any type of negligence in their respective fields. The insurance providers at Netsurance.ca believe any coverage for mistakes or performance failures can be customized and tailored to your business.
This is important because negligence claims can be a pain to handle and you’ll need a specific policy that fits your business operation. Professional liability insurance policies vary and depend on the industry they cover. Each business will have different concerns so make sure to outline yours to have the insurance providers set up a decent, well-written policy that fits your company’s needs.
Business Interruption Insurance
The importance of business interruption insurance may seem like money down the drain for some business owners, but it can save you a lot of money if something catastrophic happens. Whether it’s losses from natural disasters like a flood or a destruction event like an earthquake, this policy will have your company. It also covers global pandemics like the COVID-19 outbreak.
You will need the coverage for these unexpected interruptions in operations. If your business operates from a physical location, this halt in business duties will likely mean a huge setback to your profits and other finances. You will need some sort of compensation for any unexpected occurrence that may jeopardize your business and your employees’ salaries.
Your business will need a property insurance policy and this applies whether you own the property or are leasing it. It’s crucial and mandatory for a lot of businesses because it can cover inventory, supplies, equipment, raw materials, signage, and furniture. This is similar to business interruption policies but this policy covers cases of theft or accidental fires.
But it does not cover mass destruction events. So, make sure you understand the importance of having both policies because they have nuanced differences. Make sure you speak to your insurance provider to understand the exact policy and what it covers to avoid any misunderstandings.
Some companies have vehicle insurance policies because they have fleets of trucks going across state lines or the company provides cars to its employees. It’s important to have these vehicles fully insured against any liability because accidents are prone to happen. The policy can include vehicle damages and third-party injuries, too.
The insurance will not cover employees who use their cars, but there is an exception to that rule. It will cover them if they were delivering something, like goods or products, for a specific fee. Some companies have delivery personnel that use their cars. The insurance would cover them only in this case.
You have numerous insurance types to choose from. You just need to figure out which ones can prove valuable and useful to your business. Some types are trivial while others are important and necessary. The chances of lawsuits or damage control are always a possibility and it’s what every business owner fears.
This is why you need the reassurance that nothing will negatively impact your company easily. With the right insurance in place, you can protect your interests, the livelihood of your employees, and the future of your business.