Types Of Business Insurance And Why A Business Needs Them
Irrespective of whether your company is an established one or a growing enterprise there is one thing that cannot be overlooked the need for insurance coverage. There are different insurance policies that have been developed to suit specific enterprises working in given companies, but there are policies that are applicable irrespective of the industry in which a business operates in. When a company is out to hire an insurance company there are factors that they need to put into consideration to ensure that they make the right choice when selecting a given company to cover them. Here we take a look at the insurance types that can be applied across all industries.
In almost every state, there are laws that compel the employer to cover their employees and thus a company needs to contact an insurance company and get the workers compensation insurance which is applicable irrespective of the industry that is involved. When an employee gets injured when they are working it is the work of the company to ensure that they receive proper medical treatment thus the needs to have an insurance company that will help the company to cover the medical bills of the company and also some part of the wages they will lose during the period they will be receiving medical attention. A company may put many measures to prevent the occurrence of accidents, but despite the measures, accidents are bound to happen as no one can predict when an accident will happen.
Every enterprise also needs to have a general liability insurance policy that covers the business as well as the owners if in any case they can be sued on claims of accidents, injuries and any alleged accidents all resulting from the use of company’s products or even services. When a business has the general liability insurance they are covered on costs such as property damage, legal costs, medical bills as well as faulty products. Most businesses overlook the possibility of being sued by their customers, but in reality it is possible and thus the need to have measures to help the company when such occurrences happen.
Professional liability insurance is also known as errors and omissions insurance or malpractice insurance which protects the business when they may be sued for alleged negligence when offering their services. A company can also be sued in the case of providing shoddy work or when they make mistakes or omissions and thus the insurance suits the companies that offer services.
It is also advisable for a company to seek for property insurance to cover their assets and get compensated in the case of destruction or damage of the property mainly due to disasters.