Types Of Business Insurance And Why A Business Needs Them
An insurance is a vital consideration for every business and thus should not be overlooked when running a company irrespective of whether the company is a growing one, or it is an established company. There are different insurance policies that have been developed to suit specific enterprises working in given companies, but there are policies that are applicable irrespective of the industry in which a business operates in. There are several factors that a company needs to consider when they are selecting an insurance company such as the cost and the type of their business. Here we take a look at the insurance types that can be applied across all industries.
In almost every state, there are laws that compel the employer to cover their employees and thus a company needs to contact an insurance company and get the workers compensation insurance which is applicable irrespective of the industry that is involved. In the case of an employee getting injured when they are performing their daily tasks, the insurance company will take the responsibility of insuring the employee where they will cover their medical bills and also part of their lost wages during the period they were receiving medication. Even though a company lays down strategies and safety measures to prevent the occurrence of an accident they are likely to happen as accidents are unpredictable thus the need to have an insurance company to help the business as well as the employee.
Every enterprise also needs to have a general liability insurance policy that covers the business as well as the owners if in any case they can be sued on claims of accidents, injuries and any alleged accidents all resulting from the use of company’s products or even services. The general liability insurance can help cover property damage, medication cost, slander, legal costs as well as faulty products. There are many companies ignoring the fact that they can be sued by their customers and have not thus acquired the general liability insurance but it is advisable to have such a policy to help the company, in any case, it ever happens.
Any business also needs to have a professional liability insurance that covers them when they are sued by their clients as a result of poor services or any alleged negligence which has seen the insurance policy named malpractice insurance or omissions or errors insurance. A company can also be sued in the case of providing shoddy work or when they make mistakes or omissions and thus the insurance suits the companies that offer services.
It is also advisable for a company to seek for property insurance to cover their assets and get compensated in the case of destruction or damage of the property mainly due to disasters.