Planning to get insurance for your business? With many different packages and types of insurance in the market, things can get pretty complicated and time-consuming when searching for the right insurance. Knowing to choose the right insurance policy is critically important for your business. It is imperative that you, as a business owner, understand the entirety of the insurance policy you are entering your business into before you sign up and buy it.
With all the hassle that comes with owning and running a business, it is better to be insured than under-insured since it exposes you to a potential financial risk somewhere in the future. Now, we will help you understand the distinction of some business insurance so you will know which one fits best.
Note that insurance depends on the nature of the business, what may apply to others may not apply to yours.
- PROPERTY INSURANCE – an essential requirement for the majority of companies since it gives the business-owned properties protection from such things as fire and theft. Other business assets like computers, furniture, and machinery, could also be covered in this insurance. Moreover, it also guarantees your business protection in case of natural disasters that may physically damage your business.
- GENERAL LIABILITY INSURANCE – also known as business liability insurance this covers against claims that involve injuries to the human body and damage to property that results from the products, services, or your place of business. For instance, a customer could slip and fall in your store. You may face a claim for medical costs or lost income that could cost a significant amount of money. A general liability insurance policy helps protect your business but it does not protect you from being liable for employee injuries, nor cover car accidents or professional mistakes made by you or your employees.
- WORKERS’ COMPENSATION INSURANCE – opposite to the general liability insurance, this type of insurance covers bodily injuries sustained by the consumers in consequence of your products, services, or business in general. Also, this protects your employees from any injuries that transpire while on the job.