Importance
of Insurances in Small Businesses!
Every
small business owner needs insurance to help make sure you're protected against
all the different types of risks your business faces. Businesses
need business insurance because it helps cover the costs associated with
property damage and liability claims. Without business insurance, business
owners may have to pay out-of-pocket for costly damages and legal claims
against their company. Depending on the incident, this could be a financially
devastating scenario for business owners.
Insurance
for small businesses is important for many reasons. It provides certainty
against events that could destroy a small business or financially decimate the
business or sole trader. We work so hard to build up our businesses and assets
and all could be lost through an event that could be covered by a relatively
inexpensive Insurance Policy. Small Business Insurance is relatively
inexpensive as most insurers have packaged the required covers into a
relatively simple and inexpensive package.
The insurance covers the risk factors
and financial consequences associated with the risks. Small Businesses are most
vulnerable to the risks and it could wipe out all the assets if not protected
through proper insurance. Please click
the link for the Top
10 Reasons Why Your Business Needs Insurance
Types
of Insurance, you need for Small Businesses
1. Keyman Insurance
Keyman insurance can be defined as
an insurance policy where the proposer, as well as the premium payer, is the
employer, the life to be insured is that of the same employer's key employee
(Keyman) and the benefit, in case of a claim, goes to the employer.
2.
General Liability Insurance
General liability
insurance covers costs that business owners may incur in cases of accidents and
injuries that involve the company. If a client or employee is injured on your
premises and the company issued, the ramifications can be costly.
3. Professional Liability Insurance
Professional
liability insurance helps protect you and your company against a claim that
professional advice or services you provided caused a client or customer
financial harm due to mistakes on your business’s part or because the business
failed to perform some service.
4. Product Liability Insurance
Most products on the market have
manufacturers, distributors and retailers. If your company is involved with any
of those processes, you might consider purchasing product liability insurance.
If the product your business is responsible for causes harm or loss of
business, you could be held accountable; product liability insurance covers you
in these cases.
5. Professional Indemnity Insurance
Professional indemnity insurance
covers financial loss, personal injury and property damage resulting from your
negligent act, error or omission while you're working for a client. ... And
it's employers' liability insurance that you need to cover employee claims for
workplace injury.
6. Commercial Property Insurance
Insurance that protects the
physical property and equipment of a business against loss from theft, fire or
other perils; all-risk coverage covers against all risks; named-peril coverage
covers only against specific perils named in the policy.
7. Workers' Compensation Insurance
If you own a business, you are
required to have workers' compensation insurance, also called workers' comp. It
covers costs incurred when a worker is injured on the job site or while
performing work duties. The benefits of this type of insurance work for the
employee and the employer. The employer is protected from lawsuits and the
employee has his medical expenses covered and sometimes receives additional
benefits, including partial uninterrupted income.
8. Group Health Insurance for the
company employees
A group health insurance policy is
purchased by an employer for eligible employees of a company. One of the key
employee benefits packages provided by employers, a group health insurance plan,
in some cases, may also provide cover to family members of employees.
9.
Medical Insurance for Owners &
family
Employer or Company Group Health
Insurance Plan is usually group insurance, which covers all the employees in
the organization. Group policies are usually cheaper than individual policies.
Company Group Health Insurance plans are not the ideal way to protect yourself
and your family from medical costs. Consider taking a separate medical
Insurance that covers your requirements and family requirements.
10.
Project Insurance – Contractors All
Risks policy
Contractors' all risks (CAR)
insurance is a non-standard insurance policy that provides coverage for
property damage and third-party injury or damage claims, the two primary types
of risks on construction projects. ... Third parties, including subcontractors,
may also become injured while working at the construction site.
11.
Credit Insurance for the company
Credit Insurance is a tool that
helps the companies to expand business with peace of mind. Credit Insurance
protects companies against customer defaults. It covers the sales of the
companies to its buyers on credit against the risk of loss due to the
insolvency of their customers.
12.
.
Business interruption insurance
If a disaster or catastrophic event
does occur, a business’s operations will likely be interrupted. During this
time, your business will suffer from lost income due to your staff’s inability
to work in the office, manufacture products or make sales calls. This type
of insurance is especially applicable to companies that require a physical
location to do business, such as retail stores. Business interruption insurance
compensates a business for its lost income during these events
13.
Cargo Insurance
Cargo Insurance provides coverage
against all risks of physical loss or damage to freight during the shipment
from any external cause during shipping, whether by land, sea or air. Also,
known as Freight Insurance, it covers transits carried out in the water, air,
road, rail, registered post parcel, and courier.
14. Commercial
Auto Insurance
Vehicle insurance is insurance for
cars, trucks, motorcycles, and other road vehicles. Its primary use is to
provide financial protection against physical damage or bodily injury resulting
from traffic collisions and against liability that could also arise from
incidents in a vehicle.
15.
Transit Insurance
Transit insurance is a policy that
covers business goods or personal belongings while they're being moved from the
place of loading to the stated destination overland by a certain transport
mode.
16.
Shipping insurance
Shipping insurance is a service
that may reimburse senders whose parcels are lost, stolen, and/or damaged in
transit. Shipping insurance is sold by postal services, courier companies, and
shipping-insurance companies. Not all insurers will insure all goods.
17.
Insurances for All Risks such as
Natural Calamities like Tsunami, Storm, and Floods etc.
Comprehensive coverage will cover
you for any damage not caused by an accident – think theft, fires, vandalism –
and “acts of God,” like weather damage or a tree falling on your vehicle. As
any insurance agent will tell you, comprehensive is an essential coverage when
a natural disaster strikes.
18.
Insurances for Riots, War
War risk insurance
is a type of insurance which covers damage due to acts of war,
terrorism, including related perils such as strikes, riots, civil
commotion etc. Your insurer might not settle a claim under your health
insurance policy if the disease is declared as an epidemic or pandemic by the
World Health Organization (WHO).
19.
Cyber Liability Insurance
If you have a website for your
business or you store sensitive customer information on your computers or
laptops, you should think about holding a Cyber Liability policy. Cyber
Liability Insurance protects your business in the event of a cyber-attack.
Whether your website is hijacked and defaced, or your sensitive data and client
information is stolen, the costs of repairing the damage and the legal costs
associated with a data breach can have a significant impact on your business,
not to mention the damage it can cause to your reputation.
SME Leap is designed to provide tools and information which entrepreneurs and business owners need in one place to cross the growth barriers they had in taking their business to the next level. Please visit https://smeleap.com/to know more about us.
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