The life of an entrepreneur means that there will always be some level of exposure to risk. Heading your own business means that you are taking on a whole slew of legal responsibilities, and you want to make sure that you are fully protected should something awful happen.
Running your own business is a risk, and that risk expands if you have employees or a brick and mortar establishment. Fortunately, there are a wide range of insurance options available to protect business owners against the possible mishaps of operation.
Here is a quick overview of a few of the most vital types of insurance an entrepreneur should have in place.
Business Interruption Insurance
Business interruption insurance will cover any losses accrued in the case of a catastrophic event. This type of insurance is most useful for business owners who run a physical location.
The right insurance coverage can save your business in the event of a hurricane or some other devastating natural disaster. Business interruption insurance will also cover the lost wages of your employees, so you can feel safe that everyone will be provided for financially.
Professional Liability Insurance
Every entrepreneur should invest in professional liability insurance for protection. Professional liability insurance offers financial insurance against claims of negligence or failure to perform. Class action lawsuits can cost millions and will leave your company in ruins without the proper protection.
Every industry is a little different when it comes to this particular form of insurance, so make sure your policy is properly customized for the best coverage possible. This coverage will protect you financially from faulty products and other “deal breakers.”
Workers’ Compensation Insurance
Another professional liability you will encounter as a business owner is to provide and protect your employees. If someone gets hurt on your clock, you have to have something in place to make sure they will be financially covered.
Of course, there are stipulations to receiving full and proper coverage. Employees must always pass a drug screen directly after being injured to assure that the accident wasn’t caused by illicit drug use.
Property insurance does just what it sounds like it does; It protects the property you own or lease for your business. Property insurance covers your signage, your physical inventory and furniture in the case of a fire, theft, or natural disaster.
One thing to know about property insurance is that it doesn’t usually cover floods or earthquake damage. If you live in a region that is more prone than others to these situations, then you should make sure to acquire a more specific coverage option.
Product Liability Insurance
If one of your products causes harm to a consumer, then you could be held accountable, financially, for all of the costs accrued for their treatment. Product liability insurance will save you from ruin in this case, and provide for the injured buyer.