It takes a lot of time, resources and effort to build a successful business. That is why business owners need to invest in business insurance. The insurance policy will protect the assets of the business from different risks. The most common risks include fire, burglary, flooding, theft, and lawsuits, among others. Business owners must purchase a suitable insurance policy to protect their investments. Smart Business Insurance has the best insurance policies for different businesses and also for self-employed contractors, consultants, tradesmen and small businesses. Be sure to get in touch with them to assess your coverage needs and identify the right policy for your business coverage needs.

Types of Business Insurance

1. Business Property Insurance

Any decent-sized business has a lot of valuable assets. This includes computers, stationery, furniture, and fittings. Businesses that are in the consumer goods market segment also hold a lot of inventory in their premises. Since these assets can be damaged, stolen or lost in either, they must be insured. In case of loss or damage, the insurance company will compensate you fully for your losses. It is important to note that the ideal business insurance policy should cover the business assets fully and not partially.

2. Public/General Liability Insurance

This is perhaps more important than a business property insurance policy. While the assets owned by a business may be valuable, they have a quantifiable value. Injury lawsuits can come with huge claims that can lead to bankruptcy. A customer may slip and fall into your business premise or claim that a product they bought from you caused them injury. To protect yourself and your business assets, be sure to purchase public or general liability insurance policy. The policy will pay the legal fees incurred while fighting lawsuits and pay any compensation that the court may award. This means that it will not adversely affect you.

3. Workers Compensation

In many high-risk industries, workers’ compensation is a basic necessity. You cannot hire workers in the construction and mining industries if you do not have this type of insurance policy. Therefore, you must purchase workers’ compensation insurance and enroll all your workers into the program. The beauty of workers’ compensation is that all the workers who have been enrolled in the program cannot sue you when they get injured. Besides that, the insurance company will pay medical bills, wage replacement benefits, rehabilitation costs and other expenses related to treating the injuries. Therefore, injured workers do not have to worry about fending for their families as they recover.

4. Commercial Vehicle Insurance

Commercial vehicles usually carry a lot of goods. They are also expensive vehicles. This means that both the vehicle and goods onboard should be insured from losses. A commercial vehicle insurance policy will compensate you for all the losses you incur.

5. Business Income Insurance

The income from your business is never guaranteed. This is because the economy and consumer needs are always changing. Therefore, insure your business income. In case of any adverse changes to your income within the coverage period, it will compensate you for the difference.

What to Consider When Buying Insurance

i) Liabilities Covered

You have to check the inclusion clauses of an insurance policy to find out exactly what is covered. This is crucial because you want to buy a policy that covers exactly what you expect it to cover. Before making a purchase, be sure to go through the inclusion clauses, as this will tell you whether it is the right group for you.

ii) Exclusion Clauses

The exclusion clauses of a policy will tell you whether certain liabilities are covered. The exclusions list every liability that is excluded from coverage by a policy. This is where you’ll find out if employee theft or accidents caused by drunk driving are covered by a policy. The exclusions will also give you a good idea of whether a policy is worth the premiums charged. If not, you can look for a more suitable policy.

iii) Premiums Charged

The cost of insurance will differ from one insurer to the next. The premiums also depend on the liabilities covered and extent of liability coverage. If you want to get value for money, be sure to compare premiums charged hand in hand with the liabilities covered and extents of liability coverage. This will help you make an informed decision.

iv) Other Terms and Conditions

An insurance policy is a legal contract. The insurer undertakes to cover certain risks and in return you agree to pay the required premiums. Be sure to read the terms and conditions of the insurance policy before you decide to commit yourself. This will go a long way in ensuring you get the best value for money.

During the search for the perfect insurance policy for your business, you know that buying a bundled policy is cheaper than buying individual policies from different insurers. Working with a trusted business insurance broker is also recommended. Exercising patience during the search is important because you do not want to make any mistakes that may prove costly. Consulting the experts in the insurance industry is also crucial because you want to get competent legal counsel.