Business Insurance: Do You Have Enough?
Updated: Dec 6, 2021
Did you think buying insurance for your business is much like buying insurance for your car? Although both processes may require great thinking and evaluation of risks, buying business insurance is not as simple as having your car insured. Because the very nature of operations is unique, it is important that you design the insurance policy based on the needs of your business as well the level of protection that you feel most comfortable with. Your first decision will include which type of insurance program does your business requires.
Whether you’re running a small business or a big one, you will encounter various types of insurance programs. Perhaps, later on, you will realize that you need more than just one type of protection for your business. The thought of it may be overwhelming, and the cost of each one added up together might make you reconsider.
However, the most basic type of coverage that any business requires is property and liability insurance. These two have been considered the most essential.
Property insurance for businesses makes sure that the policy covers all the assets found under your business. The building, equipment as well as other valuable items in the establishment shall be replaced by the insurance company in case an accident happens. Even home-based businesses must buy a separate property insurance for their business at home because most home insurance policies don’t include home-based businesses in their coverage.
Liability insurance protects the business from losing everything over a liability claim that a customer or an employee filed for. Whether it is caused by accident in the process or the negligence of an employee that may have caused an injury to themselves and others, the liability insurance covers that. However, if you are part of the industry that comes with more detailed job descriptions, it is best to get individual liability coverage. This will ensure that all is paid for and still you will have enough to start over.
One can never tell they have enough insurance coverage until something bad happens and they turn to the insurance company for help. Although most business owners catch themselves under-insuring their business and end up paying a higher deductible, you don’t have to end up like that. There is no such thing as being over-prepared for the worst. The term to use is that the business is insured.