You’ve started your own business. Congrats! That’s a huge achievement.
But you know hard work doesn’t stop here.
The crucial next step is to bulletproof your business.
By working with your insurer to identify the liabilities your business is prone to and finding the perfect way to protect your “precious”.
For those of you who don’t see the need to bulletproof your newly-founded business, let me share with you some unexpected things the future can bring your way:
- Catastrophic events, such as an illness or death
- Natural disasters, such as floods or fires
Not going to happen to you? These are all realistic scenarios! Is it worth the risk?
Let’s take a look at some must-have insurance packages to protect your business.
1. Workers’ compensation insurance
Do you have an employee? You should get a workers’ compensation insurance package.
This insurance will cover your employee’s medical and rehabilitation costs in the event of a workplace injury.
What does it cover?
- The employee’s medical bills and salary.
- The business owner’s liability if the injured party’s spouse/partner decides to sue.
- The optional element includes protecting the business owner against lawsuits for claims such as sexual harassment, discrimination etc.
You might also be interested in: How Much Do You Know About Income Protection?
2. General liability insurance
This type of insurance protects you against lawsuits in case of accidents or injuries that occur on the business’ premises.
The downfall with general liability insurance is its blind spots and omissions. Make sure you know exactly what your policy covers before signing your contract.
Tip: Confirm with your insurance company that your policy covers your business’ specific liabilities by opting for additional liability policies, such as professional liability insurance.
3. Property insurance
This policy is definitely a must-have, whether you own your space or you rent it.
Property insurance protects your equipment and inventory in the case of a storm, fire or other unexpected causes. Massive natural disasters such as floods or earthquakes aren’t covered by this insurance.
Tip: Discuss with your insurance company about the type of policy that suits your business best, while taking into consideration your geographic location.
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4. Auto/vehicle insurance
Here’s a good rule of thumb: if your business uses a car or any type of vehicle, they should all be insured. This will protect your business in case of an accident.
If an employee is using their own vehicle to work, their personal insurance will cover damages in case of an accident. However, there’s an exception if the employee is delivering goods and services in exchange for a fee.
5. Home-based businesses need commercial property insurance
Is your company a home-based company?
Your homeowner’s insurance policy doesn’t cover your home-based business. Look into commercial property insurance in order to fully protect your company against any liability.
Ask your insurance company to suggest additional policies available for home-based businesses. You’ll want to make sure all your equipment and inventory will be covered as well.
Review your insurance policy with this 4 Point Insurance Check before getting an insurance.
6. Product liability insurance
Is your business manufacturing products for the general market? Then you definitely need this type of policy.
Product liability insurance is the most specific type of policy when it comes to a business’ liability due to a product malfunction. You can never predict a lawsuit in cases like this.
Tip: Discuss with your insurance company and personalise your policy to perfectly suit your business and the type of products you manufacture.
7. Business interruption insurance
Let’s assume a disaster occurs and you can no longer keep your business running for a while. What will happen during the time your business is on pause?
A business interruption insurance can save the day. It covers for the loss of income and profit during the time of inactivity.
The best way to bulletproof your business is to collaborate with your insurance company in order to create a personalised policy to cover for specific areas your company may be liable to.
Need help to find the right protection plan for your business?
There are so many types of insurance policies available nowadays, it can be overwhelming to choose the right type for you. Start your business’ bulletproofing plan with these comprehensive must-have policies. I can help you! Let’s create a personalised protection plan for your business. Contact me below.