Importance of Insurances in Small Businesses!

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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