Irrespective of the kind of business you run, there’s always a certain business insurance you need to stay protected from potential risks and catastrophes. Any entrepreneur who overlook insuring his business is leaving his business vulnerable to harm. Without any sort of business insurance, the business can easily be swept away by the wind.
Below are 7 types of business insurance that you’ll need to protect your business from whatever factors that might want to threaten its existence or operation. Especially businesses that are perilous. When you purchase the right insurance coverage, uncertainties in business becomes nonexistent.
7 TYPES OF BUSINESS INSURANCE
1. PROFESSIONAL LIABILITY INSURANCE
This is also known as Errors and Omissions Insurance (E&O), which usually cover damages caused by a negligence, faulty advice etc. This type of business insurance is particularly for these businesses that manufacture goods or service. In a situation whereby a customer sues the business or company because of a bad product or service, the insurance company make sure that such damages are paid and legal issues settled.
2. PROPERTY INSURANCE
Whether you’re operating a business from home or from a business complex, you need this sort of business insurance to protect your business equipment, inventory, furniture, computers etc from damages. These damages might come as a result of a fire outbreak, flood or theft. If this insurance is added to your insurance policy, then such property damages will be taken care of by the insurance company.
3. PRODUCT LIABILITY INSURANCE
This insurance is a somehow similar to professional liability insurance, only that this is specifically for business that indulges in the production of goods or products. This insurance protects the producer or manufacturer from any damages that might have been caused as a result of their product.
4. WORKERS COMPENSATION INSURANCE
Depending on how many employees you have working for you, you might actually need to consider this type of business insurance to help cover employees medical treatment, disability, accidents etc that might arise in the cause of business operation. Even if the business isn’t too risky like you might have assumed, you still need it. You can never tell.
5. VEHICLE INSURANCE
When adding this to your business insurance policy, be specific on your needs. Vehicle insurance takes care of damages that came due to accident, like catering for the victims’ hospital bills. The insurance company might also replace the damaged car with a new one provided it’s included in the policy.
6. HOME-BASED BUSINESS INSURANCE
Most home-based business owners usually make the mistake of thinking that their home insurance also cover their home-based business. That is a highly flawed reasoning. Your home-based business requires business insurances like Liability Insurance in case of damages customers might get when using any of your service. A Property Insurance can also be added to your business insurance policy, if any of your business equipment, computer etc get damaged. Your home insurance won’t be able to cover your home business in case of catastrophes.
7. BUSINESS INTERRUPTION INSURANCE
In a situation whereby there’s an interruption of business because of flood, terrorism etc, which might result to no business sales, business interruption insurance is a type of business insurance that compensates the business in any way possible for their income losses. Even in monetary terms.
That’s it for the 7 types of business insurance you need to protect your business in Nigeria or anywhere else in the world. Analyse your business and discover which area that’s more at risk and go ahead to insure them. Don’t leave your business vulnerable. Business insurance ensure that you stay in business, even in the mist of storm and brimstone.