Whether you’re just starting out planning your business idea or are ready to start trading and need to get your business insurance policy put into place, it can be difficult to know what the right corporate insurance package looks like for you. But we’ve got all the information you need to pick the best insurance policy based on your business needs.
Types of Corporate Insurance
There are a variety of different types of business insurance that you might need to protect your business. They each cover a different type of risk to avoid the need for your business to personally take on the costs associated with any accidents or damages sustained while trading. Let’s look at the different types of insurance to see what coverage your business needs.
Liability insurance is a type of insurance coverage that protects your business from any mistakes that have been made in your business. There is general liability coverage, which protects your business from complaints or lawsuits, and then professional liability, which refers to any errors made in your business service. If you own an architecture firm and the client feels that you failed to deliver adequate service, having architect insurance that includes professional liability coverage would help you cover the costs in case they decide to file a lawsuit against you.
Worker’s Compensation Insurance
Worker’s compensation insurance protects the interests of both employers and employees. For employees, it provides compensation should they suffer from an illness or work-related injury. And for employers, worker’s compensation insurance provides financial assistance for any costs to do with workplace accidents, injuries or illnesses.
In most states, worker’s compensation is a compulsory insurance coverage type that businesses need to have in order to legally be able to employ workers.
If you have an office building, warehouse or storefront, you’ll need to take out an insurance policy to protect that building against any damages or theft. Your building could be damaged if you live in an area that’s susceptible to extreme weather conditions, and if you fall victim to a burglary. But insurance can help in restoring your building and paying for any repairs.
If your company operates vehicles or a fleet of vehicles as a part of your business activities, then you’ll need to protect these assets with insurance. The same way you would with a personal vehicle, there is significant risk, whether it’s accidents, theft or damages that are associated with driving. Corporate auto insurance packages are often more cost effective than singular insurance policies too.
Defining and Managing Risk
Risk is an inevitable part of running a business, and it must be considered before you launch a brand. Depending on your industry, risk can affect your business in many different ways. For example, if an accident occurs on your business premises, you would be at risk of potential lawsuits and damages sustained to your premises too. In order to protect your business from the costs, both financial and non-financial, that risk can present, you need to take out insurance policies.