After starting a business, an entrepreneur exposes himself to different risks. If you want to protect yourself, you have to think about an insurance plan, even before hiring your first employee. Insurance is the only way to protect yourself from potential problems. Some entrepreneurs make a mistake by delaying coverage. Always remember that a catastrophic event or a lawsuit is enough to wipe out your business even before its launch.
For the protection of your business, several insurance types are available. You can choose a suitable plan to protect your business from possible dangers. Here are five types of business insurance you might not know you need.
1. Liability Insurance
Liability insurance or E&O (Errors & Omissions) insurance covers your business against laxity claims because of unsuccessful operations or other mistakes. Concerns and dangers may vary in each industry, so you can get customized liability insurance for your business.
If a person suffers losses because of your products or services, he can sue you for damages. With liability insurance, you can manage sue as per the limits of your insurance policy. Liability policy can help you in the payment of medical expenditures.
2. Condo Master Insurance
A master condo insurance can be an ideal solution for condominium associations because they need special insurance coverage. If you are managing a condo, you will need this master policy. The policy covers common building areas, standard units, and structure of a building. Residents of the condominium can take a separate policy to cover their damages and liabilities. Sometimes, the lender of a mortgaged or financed condominium requires its residents to get individual condo insurance.
3. Income Stabilization Insurance (Weather)
Some insurance plans provide your business with coverage for blizzards, floods, and hurricanes. Weather can affect the profits of a company even without being drastic. Rainy days and cold winters are dangerous for retailers who need foot traffic. Moreover, companies selling snow tires or insulation might suffer in warm weather.
Many businesses can’t bear significant income loss because of adverse climate conditions. With an income stabilization insurance plan, you can get a stable flow of cash for your business. This policy allows business owners to make accurate predictions, regardless of climate conditions.
4. Vehicle Insurance
Use a fully insured vehicle for your business to decrease the liabilities of your company in case of accidents. Try to choose a policy that will not only cover your car in crashes but also provide coverage against 3rd-party injuries.
5. Life Insurance of Business
Almost every organization has an irreplaceable person. In a small business organization, this person can be a CFO, hiring manager and lead salesperson (all in one). This type of employee builds-up an implausible store of expertise and knowledge. It is not easy to replace this person.
The situation turns horrible if this employee dies unexpectedly. This situation can risk your entire business. With life insurance, you can decrease the risk of these situations. After an unexpected death of a key worker, you will have sufficient resources to satisfy creditors, run your business and search for a replacement.