It doesn’t matter the type or the size of your business, at some point you are going to need insurance. While the law might require your business to have certain insurance policies in place before you open your doors, there are other policies that are optional. With that being said, business insurance can be confusing, because there are so many different types of policies and each policy covers a different aspect of your business. Insurance can be crucial for small business owners, because often times a small business owner will have his or her life savings tied into the business. Simultaneously, even the smallest mishap could result in bankruptcy or financial disaster.
Below, you will learn about some of the losses that you can experience, and the type of insurance that can protect you.
Understanding Legal Liability
Although every insurance provider is different, legal liability insurance usually comes in two different forms. The two different forms of legal liability insurance are a general liability and product liability. General liability insurance is very important because it can protect you in the event that one of your employees, customers, or vendors gets injured on or off your business premises. Product liability is a bit different but equally important.It protects you from defective merchandise or services that result in injury.
The mass majority of businesses will have a physical storefront. Without your store, you’ll have a much harder time selling your goods to consumers. Unfortunately, a wide variety of problems can force you to shut your doors prematurely. For instance, a fire could damage your property. A tornado might send a tree crashing down on your store’s roof. Or finally, a thief could enter your property and make off with thousands of dollars of goods. This is why it is vital for your business to have property insurance. Your property insurance will cover each and every one of the aforementioned problems.
Many companies are forced to provide their workers with transportation. Construction companies have to make sure that their workers are able to reach the job site. Schools have to have bus drivers to pick up their students and take them home when the day has concluded. This presents another risk. Thankfully, commercial auto insurance will be able to protect your property and your workers. With commercial auto insurance, you can protect your vehicles, products and other equipment. Generally, this type of insurance will protect from damage and collisions.
If your employees drive their own vehicles, you should consider getting non-owned auto liability insurance. This will protect your company in the event that the employee doesn’t have a sufficient amount of coverage. Consult with a professional Houston attorney to ensure that your company has an adequate amount of commercial auto insurance.
Accidents are bound to happen. On the job site, even the safest individual in the world could get hurt. With this in mind, it is pertinent for your business to protect your employees from on-the-job injuries. This is where worker’s compensation will enter the picture. With worker’s compensation, you’ll be able to provide your employees with wages and medical benefits after an injury. This ensures that they’ll get the help they need, while also giving them a steady flow of income to supplement the lost wages.