As an entrepreneur, you certainly face many risks in running your business –whether it’s a startup or an established company. Various factors are on the line, including personal free time, finances, and even mental welfare. How then can you protect your business from typical risks like expensive lawsuits and inevitable accidents? For every business, it is essential to invest in a business insurance plan that can mitigate any potential risk. Having the right type of business insurance from a reputable firm such as Miller Hanover Insurance firm helps shield your business against losses that could impede various operations. In essence, most of the financial impact is handled by your insurer in return for monthly premiums.
Given the many types of insurance options in various marketplaces, you should select the right policy that provides maximum protection. From the wide range of insurance types, we have compiled the must-have insurance policies below.
General Liability Insurance
General liability insurance is essential coverage in every business. Business owners can use general liability insurance to cover any claims on bodily injuries or property damage that binds their businesses responsible. Businesses like construction, lawn care and landscaping purchase general liability insurance to protect against injuries to clients and damage to their property. In essence, liability insurance helps pay for damages caused, medical expenses to injured persons, and attorney fees.
However, it’s crucial to notice that general liability doesn’t cover intentional acts, auto accidents, employee injuries, punitive damages (in several states), professional mistakes, and workmanship.
Workers’ Compensation Insurance
Although employers are typically in the frontline ensuring their workplace safety, accidents are likely to happen during various operations. When accidents happen, a company needs to have workers’ compensation coverage to cater for the incurred injuries.
The workers’ compensation serves two functions—while it ensures that injured employees get the necessary medical aid after an accident, it compensates employees for lost wages during these periods when they are unable to serve their course. In essence, workers’ compensation protects businesses from forms of lawsuits filed by injured employees in the course of work. A typical example is a traffic accident when an employee sustains injuries while executing company chores. Other forms of injury might result from terrorist attacks, workplace violence, or natural disasters.
Professional Liability Insurance
Also known as errors and omissions (E and O), professional liability insurance helps cover and protects service-providing individuals or corporations from lawsuit costs and penalties resulting from negligence claims filed by their clients. The insurance covers any alleged failure to perform, financial losses, and errors or omissions related to the products and services provided by an individual or company. In essence, any claim encompassing negligence, misinterpretation, or inaccurate advice in your professional service is taken care of under professional liability insurance.
Your client can still sue you whether or not you made a mistake in your professional service, so it is crucial to get coverage under professional liability insurance. This follows the vast majority of clients who would likely sue you when they believe there is a potential mistake in your operations. The coverage also helps you evade the huge legal defense penalty you would have rather paid out of your pockets than the insurance company.
Commercial Auto Insurance
If you’re bound to use vehicles for various transportations in your company, you are also bound to have commercial auto insurance coverage. Commercial auto insurance provides the necessary coverage to business trucks, cars, vans, or other vehicles used in your business operations. Commercial auto insurance will provide sufficient coverage, whether you have a fleet of vehicles or a single truck.
If your vehicle gets into an accident, the insurance company will cover various policies, including collision insurance, comprehensive insurance, liability insurance, uninsured motorist coverage, and underinsured motorist coverage. Other add-ons you can incorporate into commercial insurance include roadside assistance, auto loan or lease coverage, expanded towing and rental reimbursement. On the other hand, regular vehicles like personal cars will also require commercial coverage if used for various business operations.
Directors and Officers’ Insurance
The director and officer insurance policy provides compensation to the company directors and officers in the event they are sued or alleged for wrongful acts while holding office. In essence, liability insurance pays the directors and officers for losses and defense costs and is registered in the course of legal action against them.
Nevertheless, it may cover other legal fees and costs to a company that may result from such actions. It is always recommended to do a background check before engaging an insurance company to ensure it is licensed.