Managing your own business can give you a wonderful sense of accomplishment and pride. On the other hand, it also comes with great responsibility because you are responsible to all of your stakeholders. To ensure the sustainability of your business it is important to anticipate future
Owning a business means you must have assets to protect and having the right insurance policy is what will ensure your business sustains periods of uncertainty.
To ensure the sustainability of your business, it is important to anticipate future risks and come up with solutions. In order to mitigate these risks, you need to invest in a business insurance policy.
What Should A Business Insurance Policy Cover?
Business Insurance protects your company from risks that may occur in your business. The risks include; fire, theft, accidents, litigation and even employee compensations.
Business insurance policies will provide cover for your business against a wide variety of risks. A good business insurance policy should cover:
The Business Property: A good policy insures your building and structures, including physical assets such as computers, office machinery, furniture and other personal items necessary for business operations; against common risks such as theft or fire.
The insurance policy should also offer additional funding if your business is recovering from a heavy loss. Usually, the insurance policies have their premiums fixed to commensurate with the level of risk. The policies should also cover additional expenses such as debris removal after an inferno, breakdown of equipment and other common operating pitfalls.
The Business’ Liability: While doing business you may come across situations where people claim you sold them defective products that resulted in bodily harm, or your business activities affected them in one way or another.
Regardless of the truth or their motivations, you may find yourself facing a lawsuit. The business liability insurance should protect your organization from litigation arising from damages caused by the business’ products. It also extends this coverage to include the employees against lawsuits arising from professional negligence.
The Employees of the Business: A situation may arise where an employee is injured during work or is suffering from an illness. Workers compensation insurance guarantees that the medical costs of an injured or sick employee will be covered and the injured shall be able to receive a portion of their salary. The policy should also provide compensation to an employee’s family in the event they passes away from work related injuries.
The Business Cars: Your Company may own a fleet of cars used to transport staff or products. To protect your firm from accident or theft related costs it would be wise to take out a business Motor Vehicle Insurance. This covers all the cars under the business against damages resulting from accidents and fire etc. In addition to this, it should pay for the third party expenses arising from property damage or body injury.
No matter the size of your business, obtaining insurance coverage for your business is essential to its success and sustainability. You must be prepared, and you would rather be safe than sorry. So our advice is, if you own a business, do not wait for calamity to strike, take the first step to protect your investment and schedule a meeting with your insurance provider.