July 25, 2020

8 Types of Insurance Coverages Every Aspiring Entrepreneur Must Consider

Whether you are a small business owner or run a larger-scale organization, you need to protect your business from various risks and potential losses from day one. Besides developing some good entrepreneurial habits, to establish a successful company, you will also need to prepare yourself well for dealing with uncertainty.

Getting the right insurance policy will help you manage the risk factor skillfully. If the unthinkable happens, your business will be covered with chances for irreparable loss minimized. Let’s take a look at eight types of insurance coverages every aspiring entrepreneur must consider.

General liability insurance

This is a coverage every entrepreneur needs to get. It would protect you from a variety of claims if your products, services, or employees caused (or allegedly caused) bodily injury, health impairment, or death to a third party. General liability insurance will also have you covered against losses due to damage or destruction of third-party property.

Health insurance plan

Since you have to deal with crushing amounts of responsibilities, pressure, and uncertainty, developing a business is quite stressful. There are various health insurance policies out there, so make sure to learn the relevant facts to choose the one that is appropriate for you. The good news is there are policies available for entrepreneurs to have your annual medical checkups or more severe conditions covered. Health insurance also allows you to receive the necessary medical treatments without additional expenses.

Property insurance

This type of policy covers direct physical loss of buildings and other property like equipment and inventory. Although property insurance is a must, please read your property insurance documents thoroughly, so you know what you are protected from. Most insurances will protect your property against fire, smoke, and vandalism damages. Usually, compensation against damages arising from floods, tornados, and earthquakes are not included in the offer, so you may want to consider getting an additional policy if you live in a region vulnerable to natural hazards.

Business interruption insurance

In case your business is unable to operate, you can protect your earnings by getting business interruption (loss of profits) insurance. If a disaster like fire, flood, theft, or other occurs, even if the interruptions last for an extended period you won’t suffer a loss of income. This type of insurance may also help secure the extra expenses like the cost of rent if you need to temporarily relocate your business after a covered peril, like fire, affects your business.

Car insurance

Whether you have company vehicles, or you and your employees use your own cars for company business, getting car insurance is a necessity. Comprehensive auto insurance will protect any road vehicle against physical damage and also bodily injury caused by a crash. Before applying for a policy, make sure to find a vehicle insurance option that suits your specific needs. It is best to go directly to top insurance companies – Youi, rewarded for outstanding customer satisfaction in Australia, offers well-tailored business liability services that suit your specific needs.

This way, you will be covered for accidents, thefts, fires, natural disasters, damage to third party’s property, or other issues according to your requirements.

Employee compensation

This type of policy provides medical care, rehabilitation costs, lost wages, death, or permanent disability benefits to workers who sustained injuries while at work or became ill due to workplace conditions. Employee compensation insurance is incredibly essential, especially if you run a hazardous business or machinery and equipment. If your company hires at least five people, workers` compensation insurance is required by law in most states.

Long term disability insurance

This coverage helps you meet your financial commitments after a disabling accident or during an extended illness. We all tend to think that such major life events will not occur to us. Still, if a sudden disability prevents us from working for a longer period, long term disability insurance provides a steady stream of income that covers essential living expenses. This policy replaces a portion of your income, helping you protect your lifestyle and those dependent on you.

Professional liability insurance

If your business revolves around giving professional advice, offering recommendations and predictions, or designing products, you need to get professional liability insurance, known as errors and omissions policy. Consultants, lawyers, and accountants are among professionals who can benefit from this insurance coverage when their expert advice does not lead to the desired outcome. The client suffers financial damages as a result.

Remember: Just a single catastrophe may push you to permanently close your business, so don’t hesitate to invest in the right insurance as it can protect your business goals from failing.