6 Types Of Insurance Every Company Should Consider
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The paradoxical thing about the very aspect of the insurance is the fact that this is an investment that you’re making, hoping that you’ll never have to capitalize on it. Still, while it’s in your best interest to let this investment go to waste, venturing into the business world without securing yourself on this front is all but wise. Not only do you need to ensure that your insurance policies are ironclad but you also need to try and cover all problematic areas that might come up in the future. With that in mind and without further ado, here are five types of insurance that every company should consider.
Professional liability insurance
No matter how hard you try and how solid the foundation for your business is, you need to understand that the professional liability insurance might come in handy. It’s impossible to guarantee that there’ll never be an error on your part, same as it is impossible for you to know for sure how your product will act in the future (some mistakes get discovered much later on). In most scenarios, these mistakes cause financial harm to your clients and customers and the only way to protect your own brand from this is to invest in a professional liability insurance.
Worker’s compensation
Another problem that might occur, whether it’s your fault or not is a workplace accident. This is particularly important if the result of this accident is a disability (temporary or permanent), seeing as how you might become responsible for it. This is incredibly important that you have a proper plan of response in these moments of crisis, as well as that you find an adequate NDIS provider to incorporate in this system. As for the plan, you need to have trained staff, emergency protocols, as well as an efficient reporting model.
Property insurance
When talking about the issue of an insurance, chances are that the first thing that crosses your mind is the property insurance. The price that you have to pay for a property insurance mostly depends on whether you’re a sole proprietorship (in this scenario you may pay as little as $500 per year), whereas, as a small consulting firm, you’re likely to pay more than $3,000 each year. Either way, these rates are calculated according to the industry standard, which means that your income should be able to cover them with ease. The problem occurs when you come to the idea of cutting corners and assume that here’s the right place to start.
Product liability insurance
Earlier on we talked about the professional liability insurance, which might cover any damage caused by the fault in the product (caused by a human error), however, it’s much safer to try and cover yourself on this front through a product liability insurance. This is a policy that protects your company against any claims regarding damage to property or injuries caused by your products. Think of them as disclaimers, except for the fact that this method actually does stand a way to help you out in this situation. At very least, this will cover all your legal costs, insulating you from the financial backlash of this financial situation.
Vehicle insurance
The next thing you need to take into consideration is the fact that your company may have a fleet consisting of several corporate vehicles. Seeing as how you already have an insurance policy for your private vehicles, it would be outright reckless not to do the same for your corporate vehicles, as well. Keep in mind that by looking hard enough, you might find much more favorable terms and get an adequate policy much cheaper since you’re getting a policy for more than one vehicle.
Business interruption insurance
Sometimes, you’ll be forced to vacate your premises or forcibly start a downtime of your company. Not only will you lose money in this scenario (due to the inability to generate profit) but also cause your brand some harm in the long run. For instance, some of your regulars might be in such a hurry that they choose to find an alternative solution in one of your competitors. In fact, some of them may provide an excellent service, which will give your customers no reason to come back, even after your downtime is over.
In conclusion
As for the terms of your insurance, there are so many different factors to take into consideration. Your company’s reputation, your credit rating, your industry and the type of product that you’re trying to get an insurance for. Still, no matter the cost, these six types are the bare minimum that your brand needs in order to get at least a basic degree of legal insulation. This is why the issue of company insurance needs to be addressed as early as your business plan.
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