As a company owner, you have a lot to protect to guarantee your continued existence and success. Once you start your own company, you automatically assume huge risks from the word go, and this makes it important to have the most suitable insurance cover in place. Any form of catastrophe or lawsuit against your company could prove disastrous on your part as it can end up wiping it out even before it stands on its own. Luckily, you do not have to face all these dire adversities as there are various types of insurance available to protect your company from the probable dangers. Here are five types of insurance you need to protect your company.
1. Property Insurance
Whether your company leases or owns its place of work, you must take out property insurance. This type of insurance covers your inventory, equipment, furniture, signage in the event of theft, storm or fire breaking out. If your company is located in an area that is prone to earthquakes and floods, you should check with your preferred insurance company whether they cover such events or not. These events that cause mass destruction are not normally covered by the standard policies for property insurance.
2. Professional Liability Insurance
A professional liability insurance cover is important to your company as it covers you against claims citing negligence on your part as a result of errors and omissions. This insurance policy guards your company against harm that could occur as a result of its failure or mistake to perform a certain task. There is no standard policy available for this type of insurance policy as each sector has its own concerns that must be addressed. You must find out all the set concerns in your industry and abide by them as you take out your professional liability insurance policy.
3. Product Liability Insurance
If your company is involved in manufacturing products for the general market, you must take out a product liability insurance policy from a company like Zuma Insurance. This type of insurance is important as it guards your company against lawsuits stemming from damages that could be caused by any of your products. A product liability insurance policy is necessary to protect your company from such scenarios and can be tailored to fit a specific product.
4. Workers’ Compensation Insurance
Immediately after you hire your first employee in the company, you should add workers’ compensation insurance to your company’s insurance policy. This insurance policy covers employees’ medical treatment and benefits in case of death or disability in the course of their work. This is the best insurance policy for electrical contractors if your company is involved in the industry. You should take this type of an insurance policy even if your employees perform tasks that seem less risky. There are various medical conditions and slip-and-fall injuries that can greatly dent your company’s finances when a claim arises.
5. Auto Insurance
If you have company vehicles that are used by your employees to run errands on behalf of the company, they ought to be insured fully to protect you from liability in the event of an accident. You should ensure that at the bare minimum, your company vehicles are insured against third-party injuries. However, comprehensive insurance policies are a better option as they also cover your vehicle in case of an accident.
All of the above are some of the types of insurance policies available for your company. When you have the right insurance policy in place, you will help your company avoid a huge financial loss occasioned by either a catastrophic event or lawsuit. You should consult your insurance provider on all the types of insurance available for the kind of business your company deals in and make plans to take them.