FOR YOUR BUSINESS

5 TYPES OF INSURANCE CRUCIAL TO SMALL MEDIUM SIZED ENTERPRISES

This post enlightens the reader on reasons why he must have general business insurance

“High skill and the need to control you destiny” are the primary motivators for most entrepreneurs to get out and start their own businesses.

The hard work sacrifice and effort that goes into transforming an idea or a vision into a working business enterprise can only be fully appreciated by the owner. After setting up your business, keeping your vision alive and secure is your duty. As such comprehensive understanding of insurance and more specifically, general liability insurance and E&O insurance is crucial to keeping your business safe and secure.

Small Medium Sized enterprises bear particularly higher risk than bigger companies and corporations. A majority of small businesses however remain largely uninsured.  

General Liability insurance is essential and designed for all types of contract service providers big or small in meeting unexpected costs resulting from unpredictable incidents, it is akin to malpractice insurance offered to doctors to cover them and their practice in case anything goes wrong.

RISK can be defined as:- The uncertainties associated with day to day running of business. Such events can leave you exposed liable in case of an accident involving or caused by an employee, injury to client and even by standers. Having general liabilities insurance protects your business from the associated liability and costs.

Typically a contractor is required to get insurance before you start your first job or go into business. Premiums are paid on a regular basis either monthly and yearly.

(E&O) or Errors and Omissions insurance is by designed a protection mechanism to protect professionals against claims made by clients for inadequate work or negligent actions. E&O cover normally covers legal costs and settlement amount up to the agreed limit on the insurance contract.

Products can also be insured by companies dealing in manufacture, wholesale, distribution of products, buying Product liability insurance protects you against financial loss as a result of a product defect that causes injury or bodily harm. The premium paid, varies according to the product as such the rate charged for a clothing store for instance would have a far less premium than a small appliance.

Commercial Property insurance is also a vital bit of protection that covers a wide variety of events such as fire, smoke, wind, civil disobedience vandalism and a few other mishaps. The definition of property is broad and includes lost income, buildings, computers and even money.

Property insurance is in two broad forms: all-risk covering a wide range of incidents and perils with given exception as noted on the policy. Peril specific policies that cover losses from only listed perils.

Home-based business insurance  Conventional thought would lead you to believe that home owners insurance would cover business losses for those who run in-home businesses- This is not so. Depending on the risks to your business, you may add riders on your homeowner’s policy to cover normal risks such as business property. You may however need to purchase additional policies to cover other risks such as the ones discussed above.

Commercial car insurance Whenever a business uses vehicles for commercial purposes it needs to have commercial auto insurance. This policy will protect the business and cover vehicle damage and health needs caused by accidents, third party injuries, uninsured motorists and more at no liability to your business.

The insurance umbrella is great and will help to shield you and your dream from frivolous claims that may cripple your business. regardless of your field of practice, business insurance is an excellent way of cushioning yourself and your business from the risks that are inevitable in life.