10 Business Insurance Plans That Can Protect Your Business When Times Are Tough
As a responsible business owner, you need to be optimistic and practical at the same time. While you need to be positive about the company goals you also need to be aware of the risks that can hurt your business. Veteran executives and owners know how much is business insurance important in terms of keeping their investments afloat during turbulent times.
If you are someone who wants to understand the basics of business insurance, then you stumbled upon the right post. We reveal 10 different business insurance plans that can provide protection from various different risk factors.
Business Owner’s Policy (BOP)
This is a business insurance policy that bundles different types of coverages under one plan. This is an umbrella policy that protects businesses from various different types of risks ranging from fire and theft to property damage. The advantage of a BOP is that it’s generally more affordable than buying the bundled coverages individually. This is an all-purpose business insurance for shops, offices, and small manufacturers. Most veteran business owners buy secondary insurances after buying a blanket BOP plan for additional protection.
Business Property Insurance
This is a type of insurance that covers the property and the assets inside it from risks such as fire and theft. They also provide protection against some natural disasters such as storms but often do not include earthquake and flood protection.
Professional Indemnity
This is an insurance that comes into action when a business’s service or work ends up harming its client. This may be producing a defective component that damages the client’s brand reputation.
Business Interruption Insurance
Business interruption insurance comes into play when operations get halted due to an unforeseen event. The insurance covers the loss incurred during this period of lull.
Cyber Insurance
If your business is heavily dependent on computers and servers, then getting cyber insurance makes sense. It provides compensation if computer systems get damaged during normal working conditions. No matter big or small, all IT companies can use cyber insurance to keep their assets protected.
Key-Man Insurance
Does your company employ a person without whom the business would fail to operate? While a lot of employees are replaceable others are not. Key-Man insurance from a company such as keypersoninsurance.com protects and compensates businesses for the loss of a valuable employee.
Product Liability
This insurance can help you settle lawsuits and provide compensation if someone is harmed by the use of your product. This only applies to manufacturers and not distributors and retailers selling the product.
Workers’ Compensation
A workers’ compensation is a type of business insurance that provides compensation for injuries and death that may occur during work. This is a bread and butter insurance for most businesses with significant employee strength. Even if your business employs a few people, getting a workers’ compensation coverage is the responsible way to go.
E&O Insurance
Also known as professional liability insurance, E&O (error and omissions) insurance protects businesses from claims of harm caused by their products or service. This can be due to negligence or mistake that ended up causing damage.
Credit Risk Insurance
Businesses often have to give their clients credits for forging better relationships and ensuring future orders. However, there is always a risk involved as the service or product is received by the client before they make the full payment. Credit risk insurance is an important business insurance plan that compensates a business if their client fails to pay.
