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 many considerations that a company needs to make when they are out to contract an insurance cost with the primary consideration being the cost and also the kind of business that the business carries out. We are going to look at the insurance policies that fit a business irrespective of its industry.
One of the insurance that is needed in all the industries is the worker’s compensation insurance where the laws in almost every state compel the employer to insure their employees. 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. Irrespective of your industry and all the measures put in place to ensure the safety of the employees there will be cases of accidents resulting in injuries thus the need to have an insurance company to compensate them after such occurrences.
Another insurance type that is required by any business is the general liability insurance which is designed to protect the business and its owner from claims such as accidents, injuries and even claims of negligence. The general liability insurance can help cover property damage, medication cost, slander, legal costs as well as faulty products. Most businesses overlook the possibility of being sued by their customers, but in reality it is possible and thus the need to have measures to help the company when such occurrences happen.
Irrespective of your industry there is the need for any business to have a professional liability insurance that will cover them when they are sued by their clients alleging negligence when the company offered the services and thus it is also known as malpractice insurance or errors and omissions insurance. There are clients who will sue your company, especially the service companies when they mishandle the work and make mistakes or omissions thus the need for the businesses to have an insurance policy covering them.
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.
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