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The last thing any budding entrepreneur wants to think about is insurance. After all, insurance is what is reserved for the worst-case scenario.
As an entrepreneur, your business is one of the most precious things in your life. No one wants to think about the worst-case scenario that could happen to what you hold dear.
If you don’t think about it, though, you’ll be kicking yourself should a time come when a catastrophe happens (fingers crossed it doesn’t). However, by then it will be too late to start looking at the types of business insurance that you should have had.
In order to help you navigate the crazy and overcrowded world of business liability insurance, we’ve put together an article to help you understand the industry. In this post, you’ll learn about the primary different types of business insurance, and whether you should consider signing up for one.
Professional Liability Insurance
First and foremost is professional liability insurance. This is the type of insurance that will cover your business should you or an employee ever render a poor service to a customer. Such a thing could happen for many reasons. You may have made the unfortunate mistake of hiring a bad employee or you may have simply made a mistake while carrying out your duties. Regardless, professional liability insurance will cover you in that scenario.
Workers’ Compensation Insurance
Workers’ compensation is what is given to individuals who get hurt on the job. If someone is working a forklift in a warehouse, and something falls off a pallet and breaks their toe, then they can file for workers’ compensation. This will pay them lost wages and also compensate for their medical bill.
Getting this type of insurance will ensure that you have money on hand to pay workers’ compensation should such an unfortunate incident ever happen at your business.
Lost Revenue Insurance
Let’s say something catastrophic happens that puts a brief hold on your business operations. For instance, let’s say that you own a bakery, and the road you’re on gets shut down for a couple days because of a major accident. You’re going to lose all your business. However, your costs (rent, supplies, employees) will stay fixed. Thus, you’re losing money hand over fist.
Lost revenue insurance pays your company the lost revenues during difficult time periods such as the above. It’s a significant cost, for sure, but if something like that ever happens you’ll be wishing you had considered the various coverage options available.
Types of Business Insurance Made Simple
Now that you know the various different types of business insurance available on the market, it’s time for you to look at your business to decide which one(s) you need!
For more small business advice, make sure to check out the rest of the articles on our website!