Starting a business comes with certain risks, even before you hire your first employee. Unforeseen circumstances can arise at any given moment, and a single catastrophic event can be enough to wipe out a small business. That’s why it’s vital to have the right sr22 insurance iowa in place.
Fortunately, there is an array of insurance types designed to protect your business against various dangers. These policies allow you to focus on what matters most, getting your business off the ground and taking it to another level.
Make sure to conduct a risk management audit when setting up your business so you can identify and control potential liabilities and accident costs. And remember: this is not the area where you should try to skimp!
Let’s explore seven types of insurance every business needs as soon as possible and ask for the Best Business Insurance Quote in Ontario!
Property insurance is one of the top priorities, whether your business owns or leases its space. This type of insurance covers damage to your company’s physical structures like equipment, furniture, and inventory in the event of fire, theft, storm, smoke, and vandalism.
Sometimes it includes a business interruption add-on that compensates for lost income associated with property damage. But you can take the help of the best insurance adjuster companies to get 100% benefit from your property insurance.
Bear in mind that standard property insurance policies generally don’t cover earthquakes, floods, and other mass-destruction events.
Workers compensation insurance
Once you have your first employee on board, you should add workers’ compensation insurance to your business insurance policy. It covers medical treatment, disability and death benefits if an employee is injured or dies due to a work-related accident or disease.
Even medical conditions like carpal tunnel syndrome can result in an expensive claim, so this type of insurance protects your workers while providing you with legal protection, including protection from employee injury lawsuits.
If your company uses vehicles as part of your business, they should be fully insured to protect your business against a liability claim in case of an accident. Without proper insurance, you risk paying out of pocket for repairs, injuries, and more.
Getting comprehensive car insurance is advised, as it will cover driver injury, injury to someone else, and damages to the vehicle involved in the accident. Opt for insurance providers that listen to what’s important for you and provide car insurance options that suit your needs.
Auto insurance also covers vehicles used by delivery personnel to carry goods or offer services for a fee.
Professional liability insurance
Also known as Errors and Omission (E&O) Insurance, this type of insurance is a must if your company works directly with customers and offers services or advice. It protects your business from negligence claims, improperly providing services or failure to perform.
For example, if a web developer writes a code that results in lost sales due to failure to withstand heavy traffic, professional liability insurance will help cover the cost of these damages.
When it comes to professional liability insurance, there is no one-size-fits-all policy since the nature of work is different in each industry. Customized policies are the go-to option, as they can address individual areas of concern.
Product liability insurance
If your company manufactures products for sale, make sure to acquire product liability insurance. Despite the hard work you put into manufacturing high-quality goods and taking measures to ensure the safety of the products, there is still a chance that products can fail to work properly.
This potential for defects can lead to serious risks like bodily injuries or property damage. PLI covers costs incurred by faulty products and protects the owner or the company against lawsuits filed for damages caused by these items.
When considering this type of insurance, it’s best to opt for tailor-made coverage for specific types of products.
Data breach/cyber breach liability
There has been a huge increase in hacked and breached data in 2020. COVID-19 made inroads for cyber-attacks by forcing companies to create remote workforces and use cloud-based platforms. Besides, most companies have poor cyber-security practices in place and unprotected data.
To protect your company in the event you lose business, get sued, or penalized as a result of a cyber-attack or hack, it’s imperative to take data or cyber breach liability insurance.
If your enterprise handles or stores any personal information about a client, this type of insurance will provide the funds for you to mitigate further damage and restore consumer confidence.
If you are operating your business from home, take into account that homeowner’s policies don’t cover home-based businesses as commercial property insurance does. That’s why it’s important to ask for additional insurance that will cover your equipment and inventory in case a problem emerges. Additionally, check out what Breeze can offer in terms of disability insurance so that you’re fully covered in the event of an accident.
Running a successful business requires a well-thought-out combination of risk-taking in some areas and eliminating other risks. With these seven most essential types of insurance in place, your company will avoid major financial losses in case unforeseen events happen, allowing you to expand your business.