Businesses are suffering a lot this year due to the COVID-19 pandemic. Small businesses have been hit the most since they only make profits as they go. This year some businesses closed or reduced operations to the minimum. All businesses need to have insurance cover. This protects them from unforeseeable losses. If you have a business, you should cover it under these types of business insurance.
Property Insurance Cover
A business should have good insurance cover over their property. This cover is for equipment, buildings, inventory, furniture, and signage. This applies to both leased and bought property. The property insurance cover protects the business for losses. The losses can be caused by fire, theft, and bad weather. However, mass destruction from natural calamities and terrorist attack are not covered.
Commercial Auto Insurance
If the business uses vehicles, they should be fully insured with commercial auto insurance. If accidents occur, the business should have a comprehensive auto cover. At the very least a third-party injury cover. If your employees use their cars to deliver company goods for a fee, they should use their cover.
Professional Liability Cover
Professional liability coverage protects the business against operational mistakes, oversights, errors, and malpractice. Negligence claims attract losses or lawsuits that can bankrupt a business. Each industry has its rules on concerns that may lead to professional liability and losses. Businesses should cover themselves against high-risk professional liability losses.
Trade Credit Insurance Cover
Trade credit insurance is a cover for businesses that require credit to operate. There is an essential role of credit insurance in the modern business environment. Some manufacturing companies and other service providers use commercial debts. If such a business is unable to repay these debts, the insurance cover comes in handy. If the company pays a part of the debt, the insurance can help to pay the outstanding balance. Trade credit insurance is the reason most companies have not filed for bankruptcy or insolvency.
Home-Based Business Cover
If you are exploring home based business opportunities and benefits, you need to consider insurance protections. Many big businesses are operated from home nowadays. If you run your business from home, you should cover your premises. Also, cover your inventory with home business cover. Get a package for home businesses that differs from commercial business insurance covers.
Workers Compensation Insurance
If your business has employees, then compensation insurance is necessary. This covers their medical treatment for the time they work for you. In some industries, disability and death insurance apply due to the nature of work. Slip and fall injuries at work are also included in the workers’ compensation cover.
Product Liability Cover
Businesses that deal with large-scale production need product liability insurance. This protects the business from incurring losses should something go wrong. Products should be insured during manufacturing, transportation, warehousing, storage, and distributing. This cover protects the business if the product causes damages that attract lawsuits.
Cyber Security Insurance
Some business models deal with high-security data. In the event of information leakage, they lose credibility and they attract lawsuits. Such business models should have a cybersecurity insurance cover. This business insurance cover protects the business and its employees from damages caused by leaked information.
Business Interruption Insurance
Business interruption insurance is absolutely vital to protect your small business. In the event of a disaster, pandemic, or catastrophic event, your business’s daily operations will be impacted substantially. Your staff may lose the ability to work in the office, you may have to close down specific facilities, and even face lost income. With interruption insurance, you can guarantee that you will be compensated during these events. Obtaining this form of insurance is essential to avoid a significant financial loss as a result of uncontrollable catastrophes, disasters, or pandemics.
Business Owners Policy (BOP)
Business Owners, or BOP policies are one of the most popular insurance packages owned amongst modern business owners. BOP insurance options package all required coverages that most business owners generally need. Traditionally, Business Owners Policies include liability, property, vehicle, crime, and business interruption protection for your company. However, many policies can be customized to your business’s specific needs to add what you do or do not require. Bundling all these coverage options together, you can often save money when compared to purchase coverages individually.