– General Liability Insurance
– Workers Compensation
– Professional Liability
– Commercial Property Insurance
– Business Disability Insurance
WHAT IS GENERAL LIABILITY INSURANCE?
General liability is often known as a trip and fall policy because it is for when a third party claims someone is injured. In other words, general liability covers you if a customer slips in a puddle in your store or an employee cuts himself on the job site. Any time someone claims your business caused them some sort of bodily harm, general liability insurance will protect you. Most landlords will require that you get $2,000,000 of coverage with an additional $1,000,000 per accident you have. Make sure you get this from your property manager in writing!
WHAT IS WORKERS COMPENSATION?
Workers compensation is another extremely common insurance most businesses have. If an employee gets injured during the course of his or her work day, this will cover the cost of the injuries and lost wages. If you do business in a state that requires workers compensation, dont try to get out of it. The Department of Industrial Relations can shut you down for not having adequate protection and fine you $1,000 per employee.
Costs vary depending on the state and the type of job the worker performs. Employers of high risk jobs will have to put more aside for workers compensation. For example, in California for every $100 an office clerk makes, his or her employer must set aside $1.25 in workers compensation. In Washington on the other hand, every $100 a sawmill worker makes his or her employer must set aside $2.06.
WHAT IS PROFESSIONAL LIABILITY INSURANCE?
The final insurance we will discuss today is professional liability insurance, also known as Errors & Omissions insurance or Malpractice in the medical field. Basically, professional insurance is for those who give provide services or advice to a customer that is potentially harmful. This type of insurance is especially suited for technology professionals, lawyers and business consultants.
One last thing we forgot to mention: make sure you understand all aspects of the insurance you are getting before you sign any papers. A policy may cover only certain aspects, so make sure you know what it covers and what it doesn’t. The role of an insurance agent is to make sure you are getting the right insurance and understand what you are buying, so be sure to ask them any questions you have.
WHAT IS COMMERCIAL PROPERTY INSURANCE?
It is an insurance that covers things related to the loss and damage of commercial property caused by events such as fire, natural disasters, and vandalism. If your business is in an unfriendly neighborhood or a place that is not far away from natural disasters, you might need to consider this type of insurance.
WHAT IS BUSINESS DISABILITY INSURANCE?
It is hard to imagine when you are running the majority of your business operations, and you have to stop working due to sudden injury or health issue. These unfortunate things could cause devastating effects on both your personal life and your business. At this hard time, business disable insurance can replace your income in the event of accident and health issue.
One should never expect that accidents could never happen to them. In fact, small businesses nowadays are exposed to more and more risks. Even a seemingly small accident can bring major change to your business. Fortunately, most of these risks are foreseeable and are covered by todays insurance. As a sophisticated entrepreneur, one should always think ahead to mitigate the risks, and some of these types of insurance may be an effective way to do so.