Understanding Business Insurance
Business insurance is recommended for all business owners. The insurance isn’t always mandatory, but it’s a good idea no matter the industry. Even a low-risk business can face a potentially devastating disaster.
Most companies rely on business insurance to alleviate risks of unexpected damage. You may feel you are saving money by not having business insurance, but the cost of not having insurance could mean ruin for your business.
You Need It
Business insurance covers liabilities, like malpractice and acts of nature. A customer might sue a pharmacy for giving them the wrong medication. Without insurance, the business will have to pay any damages out of pocket. Or a fire could damage your business property, and you discover you don’t have enough money to make repairs. Business insurance could help in both of these scenarios.
Types of Insurance
Public liability insurance is recommended if you regularly deal with people who aren’t your employees. This includes customers, repair people, and more. And if you offer professional services or consulting, then indemnity insurance is important. Also, if you hire more than one employee, then you are likely required to have an employer’s liability insurance.
Another benefit of business insurance is that it sometimes provides coverage for lost income. For instance, depending on your policy, you might receive compensation that allows you to pay employees during lean times. Disability is another beneficial insurance. If you become ill and unable to manage your business, then disability will cover a portion of your income. You can also add coverage for overhead to help with expenses like inventory.