Types of Insurance Policies Every Business Owner Should Consider
Protecting business investment with insurance is a critical part of every sensible business owner's business plan.
Insurance protects businesses from unexpected financial risks due to natural disasters, accidents, liabilities and losses, which may run in to thousands.
Protecting business investment with insurance is a critical part of every sensible business owner's business plan. Insurance protects businesses from unexpected financial risks due to natural disasters, accidents, liabilities and losses, which may run in to thousands.
Here are some insurance policies every business owner should consider to protect his investment as well as to ensure smooth running of his business.
Liability insurance
Business liability insurance covers the compensations and legal hassles resulted from the accidents, injuries, damage and loss caused by the business to third parties. There are three major types of liability insurance:
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Public liability insurance
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Product liability insurance
If your business involves in manufacturing, selling, or supplying goods, you should consider product liability insurance.It protects your business against financial loss as result of defective product that causes injury or bodily harm to the customer. -
Employers' liability insurance
As a business owner, you are responsible for the health and safety of your employees while they are at work.An employee being injured while on the job, can file a compensation claiming that he should be given medical help and wage replacement while in recovery.This insurance protects you from the liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.
Professional indemnity insurance
Professional indemnity insurance is a special type of liability coverage for professionals like accountants, architects, engineers, lawyers, insurance brokers and financial advisers.
In case of any faulty advice/service rendered by these professionals that causes damage to the client, the professionals are legally liable to pay compensation, if the client sues them. Having this particular policy, can help you face these legalities as well as the monetary claims.
For example, a patient may sue a physician for faulty diagnosis or improper treatment.
Business assets insurance
Business assets insurance covers the business assets such as buildings, premises, equipment, vehicles, stocks, and contents against losses arising from theft, fire, flood, natural disasters or other damages.
It provides financial assistance to rebuild or repair business property so that operations continue with as little disruption as possible.
Business interruption insurance
Your business operations may be interrupted due to sudden damage caused by natural disasters or any other accidents.
As it takes time to restore your business operations and generate profits, having business interruption insurance will offer cover for the loss of income, continuing fixed costs and other expenses associated with closure of your business.
Personal insurance
As a business owner, you should take a personal insurance policy as you are the key person in the business.
Personal insurance policy covers you against the risk of death, injury, accident or illness.
It provides income replacement, creates liquidity to pay-off debts and estate taxes on behalf of you.
Having known the different types of insurance policies and their benefits, you can either opt for selected policies or a comprehensive business insurance cover, which is customized as per your business needs. Select an appropriate insurance coverage and protect your business.
Published:Sunday, 1st Aug 2021
Author: Paige Estritori
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While many people would consider their home or their car to be their most valuable asset, it's your ability to earn an income that is most important in shaping your financial future.
Statistically, two thirds of working Australians will suffer an injury or illness that will sideline them for 90 days or more.
The majority of these people would not be able to pay their mortgage or meet car finance and other loan commitments without adequate income insurance.