Insurance can be a frustrating expense for your business. You are paying for something that, in an ideal world, will never be used. However, the world is rarely ideal. When the unexpected happens, your insurance company will protect your business from financial ruin. You do not want to pay for insurance that you do not need, but you must have proper coverage in case the worst happens.
Property Liability Insurance
Whatever the nature of your business, you have property or inventory that can be lost or damaged. It could be a major disaster that destroys your location. It could be a tree branch falling on a company vehicle. You do not expect these things to happen, but property insurance can help you when they do. Even if you are renting your building, you still need to have insurance for the various items that help your business thrive. The cost of this kind of insurance varies. You can pay a higher amount to receive the cost of replacing damaged items or pay a lower premium to get their depreciated cash value.
General Liability Insurance
If you have a physical business location, there are any number of things that can go wrong. General liability insurance protects your business from the costs of accidents that happen to others in the course of operating your business. Property owners are legally required to keep anyone on their premises safe. No one can predict when customers might injure themselves while on your property. General liability insurance helps your business cover the costs of lawsuits and medical bills. If you provide a service, this kind of insurance also protects you when you damage someone else’s property. For example, it would cover a cleaning company that accidentally scratches a customer’s floors or a dry cleaner that damages a client’s clothing. The cost of general liability insurance depends on the nature of your business. A river rafting company will have a higher rate than an accounting firm.
Workers’ Compensation Insurance
You do your best to provide a safe work environment for your employees. However, even with proper safety equipment and safeguards, accidents can happen. Not only can a work injury lead to medical costs, but it can also lead to losing the ability to work. Workers’ compensation insurance will help your business pay for these expenses on behalf of your employee. It will also help cover the cost of work-related injuries that happen over time. The onset of carpal tunnel syndrome is quite different from someone falling off a ladder, but both injuries can be covered by workers’ compensation insurance. This kind of insurance is a way of showing that you care about your employees. As with general liability, the cost of insurance depends on the risk involved in the job descriptions of your workers.
While you may fret about annual insurance payments, you will be happy that you have insurance when the unforeseen happens. Maintaining adequate levels of insurance needs to be part of your regular budgeting process. Having the right insurance will keep you and your business safe from the unexpected.
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