Types of Insurance Every Successful Entrepreneur Should Have

Wednesday, December 26, 2018, 6:00 PM | Leave Comment

No matter the scale of your business endeavor, you probably want to do all you can to make sure that your business is safe and secure from day one.

Even before you hire your first employee, there are certain things that can put your business at risk. Therefore, to reduce the chances of things going the wrong way even before you actually start, consider getting proper insurances, to stay on the safe side.

However, with so many options out there, entrepreneurs can easily get confused when it comes to choosing the best types of insurance for their business.

That is why we’ve put together a list of types of insurance every entrepreneur who wants to make it big needs to obtain for their business. Check them out.

    Types of Insurance Every Successful Entrepreneur Should Have 1
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  • General liability insurance

    Every business, big and small, needs to obtain liability insurance. Even if you are running your business from the comfort of your own home, you still need to get this policy as soon as possible. The general liability insurance covers both the defense, as well as damages in case you or your employees, your products or your services cause – or have allegedly caused – any type of injury or damage to a third party.

  • Property insurance

    No matter if you own your business’s headquarters or you are just leasing the space, property insurance is definitely a must. This insurance policy covers everything that is included in your property, like the equipment, inventory, tools, etc.

    This type of insurance protects you against fire damage, smoke damage, vandalism or storm damages. However, do note that this insurance usually does not cover damages caused by mass-destruction events, such as floods, earthquakes and tornados, so if you live in the area that is prone to such natural catastrophes, you should consider getting an additional policy.

  • Update your renter or homeowner’s policy

    This one is especially important if you are running your business operations from your own home. If you have a renter or homeowner’s insurance policy, see to it that you expand it to include all the equipment necessary for you to perform your business. Otherwise, if something happens to go wrong, not only will you be left without a home, but your business is bound to suffer as well.

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  • Vehicle insurance

    If you have any company vehicles, you should insure them against damages caused by a third party. There are several different types of policies when it comes to vehicle insurance.

    Additionally, in some parts of the world, such as Australia, you’re even legally obliged to get the compulsory third party personal insurance – or CTP for short – when registering your vehicle. That’s why you should browse various offers and find the right fit, such as this company that offers car insurance in Australia, to make sure that all of your company vehicles are covered in case something bad happens.

    Additionally, do know that some companies offer the option to get the non-owned auto liability which could be the right fit for you if you do not have company vehicles, but your employees use their own vehicles for company business.

  • Workers’ compensation insurance

    This insurance policy, as the name suggests, offers compensation to your employees that get injured on the job. If offers wage replacement and medical benefits to your employees, but in return, they forfeit their rights to sue you, as the employer, for the incident. This policy not only protects you and your business from legal complications, but it’s also beneficial to the said employee as it covers all of their wages during the sick leave as well as any necessary medical bills.

  • Professional liability insurance

    Do not mistake this policy for the general liability insurance. Professional liability insurance covers all the damages caused to a third party by your advice or recommendations. This policy is perfect for entrepreneurs who are involved in providing professional services like giving professional advice, designing products, offering recommendations and predictions, etc. It is also known as error and omissions policy.

  • Product liability insurance

    Any business that manufactures products for sale needs to obtain a product liability insurance. No matter how much you try to make sure that your products safe for use, you are still at risk of a lawsuit due to damages caused by one of your products. There are some famous examples of product liability cases and they are something you definitely want to avoid.

  • Business interruption insurance

    In case of any disastrous or catastrophic events, your business operations will most likely be interrupted. During this time your business will suffer income losses due to the inability to perform. This type of insurance is best suited for businesses that operate from brick and mortar stores as it compensates the business for any lost income during the downtime.

  • Identity theft protection

    In this day and age, the majority of crimes revolve around cybercrime. That’s why you should insure yourself against identity theft, especially since you are a businessperson. This will protect you against hacks, credit card fraud or any similar type of identity theft.

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  • Data breach insurance

    This policy is extremely important, especially for businesses that receive payments online. Not only will you be in a world of trouble is an unauthorized persona gets their hands on your business data, but it can be particularly detrimental for your business if your customers happen to fall victim to identity or credit card theft due to a data breach. That is why you need to make sure that nothing similar can happen to your business and protect your assets in case it does happen.

  • Life insurance

    Not designed solely for entrepreneurs, a life insurance policy will protect you against death. And no, this does not mean that you will suddenly become immortal; it just means that your family will be taken care of in case of your death. The way it works is that you pay a premium to the insurer, who later pays the benefits to the beneficiary. This is particularly important for entrepreneurs as it will enable your family to either keep your business up and running after your death, or the necessary funds to shut it down.

As you can see, there are a lot of things you need to think about in advance if you happen to venture in the business world. Inquire about all the things you need to take care of before you actually launch your business and make sure you are well-prepared for anything the future might throw your way instead of risking being faced with unpleasant surprises.

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