River Valley Insurance Agency Inc Blog
When an entrepreneur starts a business, he usually exposes himself to a lot of risks. Even before he hires his first employee, the business is already at risk. It is important that you have the right insurance in place for this. A catastrophic event or lawsuit can wipe out any small business before it gets off the ground.
Luckily, a business now has access to a lot of insurance types so that they will have protection against these dangers. Here are the types of insurance that a business should have in place as soon as they can.
1) Insurance on Professional Liability
It is also known as E&O or Errors and Omissions insurance that covers a business against claims of negligence that came from mistakes and the failure to perform. No policy fits all sizes in professional liability insurance. Every industry has their concerns that a customized plan written for the business needs to address.
2) Property insurance.
This insurance is a must if a business owns or leases space. It will cover the furniture, inventory, signage and equipment in case of theft, storm or fire. However, events of mass destruction such as earthquakes and floods are usually not covered by the standard property insurance policies. If you live in a place that is prone to these issues, check with your insurer so they can give you a quote for a separate policy.
3) Insurance on worker’s compensation
Once you hire an employee, you should add worker's compensation insurance to the business insurance policy. It will cover disability, medical treatment, and death benefits in case an employee becomes injured or dies because of his work with the firm. Even employees who perform low-risk work may experience slip-and-fall injuries and medical conditions like carpal tunnel syndrome that may result in an expensive claim.
4) Home-based businesses.
A lot of professionals start their small business in their homes. Unfortunately, most homeowner's policies do not cover home-based businesses in the same way as commercial property insurance. If you are operating your business from home, ask for additional insurance from your insurer to cover your inventory and equipment in case a problem occurs.
5) Insurance in product liability
Product liability insurance is a must for a business that manufactures products for sale to the general market. Even if the company takes every possible measure to make sure their products are safe, they might find themselves in a lawsuit because of damage that one of their products may cause. Product liability insurance protects a business in these cases and provides coverage that undergoes individual tailoring to particular types of goods.
6) Insurance for Vehicles
Whenever you use company vehicles, they should get full insurance to protect the business against liability in case an accident occurs. Businesses should get insurance against third-party injury and comprehensive insurance for their vehicle in case it becomes part of an accident. Employees who use their vehicles for business should have their personal insurance in case an accident occurs. A big exception to this is if they deliver goods and services for a fee. Also, include the delivery personnel.
7) Insurance in Business Interruption
Whenever a catastrophic or disastrous event occurs, the operations of a business might undergo interruption. During this time, the business may suffer from lost income because of the inability of your staff to work inside your office, make sales calls and manufacture products. This kind of insurance usually applies to companies who need a physical location to complete their business like retail stores. Insurance for business interruption will compensate a company for the loss in income whenever these events happen.
Get the right insurance in place, so your business will avoid a significant financial loss because of a catastrophic event or lawsuit. Check with your insurer to find out what kinds of insurances are advised for your business so you can put those plans in place as soon as you can.
At the River Valley Insurance Agency Inc we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (616) 301-9500 or Click Here to request a free quote.