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Nobody wants to think about investing in a business and searching for the right business insurance. Business insurance policy plans can be confusing and expensive, and may not seem worth it unless a loss, accident or claim is initiated. In case of these phenomena, the availability or lack of the right business insurance can make or break your business.
The whole point of investing in business insurance policy plans is to guarantee survival of your business or business investments should you encounter risks, challenges or unexpected occurrences.
Without the right insurance, a theft, fire, or lawsuits can cause devastating losses. This article will explore what you need to know about business insurance and why you need it:
How to decide if a Business Needs Insurance
Most business owners who have formed corporations, limited liability companies, or other entities often fail to realize the necessity of having business insurance. It is important to note that business entities protect the business owners from being personally liable for debts and challenges a business faces. However, the entity doesn’t protect the business in case of natural calamities like fire, theft, negligence accusations, or lawsuits.
The following are guidelines you should use to determine if it’s time to get that business insurance policy plan or commercial insurance:
- If your business has property and equipment that can’t be easily replaced in case of theft or distraction, then you definitely need insurance for your business.
- If there is a chance that you can face lawsuits that can cost a lot of money, you should consider insuring your business. This includes any possibility of onsite accidents and injuries, data breach or distribution of defective products.
Types of Business Insurance
The life and property of an individual are surrounded by the risk of death, disability or destruction. These risks may result in financial losses. Insurance is a prudent way to transfer such risks to an insurance company. However, different insurance policies provide cover for particular set of risks depending on the type and size. Below are the seven types of business insurance policies:
This provides coverage against any legal obligations for accidents, injuries, and negligence.
The property insurance repays you in case your business property is caused by fire, storms or theft.
Provides coverage for damages on the vehicles while being used for business purposes.
Workers’ compensation insurance
The policy pays lost wages and medical care for employees who are injured on the job.
Professional liability insurance,
For companies and businesses in the service industry, this insurance policy plan protects you against accusations based on negligence or malpractice within the business performance.
Product liability insurance
For the businesses involved in manufacturing, wholesaling, distribution and reselling industries, product liability insurance helps with coverage against accusations of supplying unsafe products or injuring someone.
Business interruption insurance
This policy helps cover the cost of relocating, paying employees, and paying rent if you have to move or shut down because of a fire or other event.
Identity theft insurance
Identity theft insurance provides liability coverage to businesses that suffer a data breach and sometimes the cost of notifying and providing services to customers who are victims of identity theft.
Umbrella insurance provides that extra coverage needed when you need more than the limit your other insurance is offering.
Why You Need Business Insurance
Business insurance consists of a wide range of coverages merged for the protection of any challenges and risks you may encounter as a business owner. If you have been looking for the reason to invest in commercial or as commonly referred to us, business insurance, the outlines below should bring to light the right aspects:
Provide coverage against natural disasters
We can’t control nature and the disasters it may bring with it. Some losses, say in case of damages, theft and lawsuits, may need high demands financially. The availability of business insurance provides financial support that can be used as compensation needed to revive your businesses, clear legal obligations or compensate for losses encountered.
Business insurance helps you have the necessary funds to ensure the business keeps running after a challenge.
Enables the Business to Run Smoothly
Business interruptions and unexpected losses are the order of the day when running a business. You never know what you will encounter legally, naturally and customer relations. Having business insurance is the ultimate coverage you need to control how deep you dive into your financial savings every time you need it. It will help you run your business without having to worry about what may befall your business.
It’s cost efficient
If you don’t have business or commercial insurance, think about how much you are going to throw away in an effort to keep your business running should you encounter challenges. Lawsuits and business recovery from damages can be costly. With business insurance you will, you won’t have to stop operating your business or projects or cater for them from your own pocket.
The insurance service provider has that covered for you. All you have to do is file a claim.
It provides peace of mind
As a business owner, peace of mind is important given that you have important decisions to make. People, organizations and machines rely on the decisions you make. Let’s not forget the fact that businesses run on risks that need a calculative mind. Even if a business seems to be doing great, there is no guarantee that it will continue to prosper, surpass expectations and win against all challenges. And we can’t stop thinking about that possibility. Well, if you are a true business person.
That is why many business owners are investing in comprehensive business insurance plans. This will give you much focus that is necessary if you want to run a profitable business.
Possible Body Injuries are covered
Accidents happen, and when that happens, liability falls on the company and you as the business owner need to take responsibility. Sometimes the injuries are not that serious, and sometimes they are which calls for financial support. Business insurance will pay for the incurred medical expenses and all the compensations necessary.
Finding the right business insurance can be tricky. You need to shop around and look for the business plan that caters for your needs while also allowing your business to be the best version of itself. While it can be time consuming and quite a hustle getting the right insurance partner, Policyhub has made the process really simple.
We have a team that specializes in insuring business across Canada customized to your needs and business goals and risks. Policyhub provides you with the most relevant insurance covers and are available for any clarification where necessary.