There are many different types of insurance, both for individuals and for businesses. If you are new to running a small business, though, you may not be aware of the many insurance options that you have in order to protect every aspect of your organisation, as well as your own personal assets. Getting the right insurance plans in place before you even start operating means that you can have the cover that you need, and the peace of mind that goes along with it. So, continue reading to learn about a few of the main types of insurance that small business owners can look into. Then, decide which insurance policies are the ones that you need to get sooner rather than later, especially if you currently do not have the budget for all of the following options. You won’t regret it.
Cyber insurance, which could also be referred to as cyber liability insurance, is meant to protect you against—you guessed it—cyber risk, which is ever-present in today’s modern world, where everyone from around the globe is connected via the internet, and where hackers are always trying to get into company systems to steal valuable data on both businesses and their customers.
With the right cyber insurance policy in place, you could receive valuable protection against first-party losses and costs. Those might include business interruption costs, as well as the costs of restoring your network and data whenever necessary. You could also receive cover for breach management, theft of funds, and even reputational damage. And beyond all of that, you could also be covered if you are ever hit with fines and penalties or third-party liabilities.
All businesses today, not just those in the tech field, could benefit from a comprehensive cyber insurance policy. If your business uses a network in order to operate and make profits, if you have an online presence, if you store, transfer, and process data that is sensitive and private, and if you have access to intellectual property that is considered confidential, this insurance is right for you.
You might assume that you only need to get a property insurance plan if you own the property that your business operates in every day. But the truth is that, whether you lease or own the building you work in, you should get a good quality property insurance policy in place.
This valuable type of insurance for businesses will help cover the cost of signage, furniture, inventory, and equipment if there is ever a natural disaster, such as a storm, that causes damage. The same holds true if a fire ever occurred in your building, or if thieves ever broke into your building and stole your goods. Hey, you never know!
Before choosing a property insurance policy for your business, consider the types of disasters that your area is prone to. For example, do you live in a flood zone? Then you might need to purchase extra coverage for this type of disaster if it is not included in the standard property insurance plan. As another example, if you live in an area prone to strong winds, you might need extra cover for that as well. So, even though you can find standard property insurance policies for businesses, keep in mind that they are not one-size-fits-all, and you may need to go above and beyond to get the cover that is just right for you.
Professional liability insurance, which is also known as errors and omissions insurance, is also a valuable type of insurance that you need to look into if you own your own business. Even if you work from home, a good liability insurance plan will give you cover in the event anyone tries to sue you. With this type of insurance, you will receive protection if you, your services, your products, or your staff members end up causing any injury or damage to another person or another person’s property.
Sometimes, a business makes mistakes, and that’s to be expected. For one reason or another, you might end up being blamed for damage, you might end up being charged with negligence, or your products and/or services might fail to perform as they should, resulting in injuries or damages to people and/or property. For all of these reasons, and because running a business comes with unexpected challenges and costs, liability insurance should never be ignored.
Just keep in mind that, like property insurance, there isn’t going to be a standard policy that covers every type of business. You need to shop around and find the policy that is right for your business and your industry. Once you know what type of cover you need, you will be able to find the policy that will also fit your budget.
Business Interruption Insurance
When you run your own business, you know the importance of keeping things going without interruption. Any interruption in the flow of your business will mean that you are no longer making money and that your profits will decrease. This is where business interruption insurance could come in really handy, as it will help you recover from losses that you incur when your business operations are interrupted for a variety of reasons.
Imagine that a natural disaster was to occur and cause your network to drop and your property to be damaged. You would not be able to go to work because your building would be off-limits, and your workers wouldn’t be able to work from the office either. All of this results in lost income. So, if you are the type of business that needs a physical location to operate from, be sure to get business interruption insurance, which could provide you with valuable compensation when interruptions do occur.
Workers’ Compensation Insurance
Running a successful business requires a team and you can’t always go about it all on your own. Once you begin hiring employees, though, you will also incur the additional cost of getting the right workers’ compensation insurance. This is a must, as it will help to cover the costs of medical treatment if your employees are ever injured while working for you.
The right workers’ compensation insurance will also cover costs associated with disability and death if serious injuries or death were to happen to your employees. And don’t assume that employees who perform what appears to be low-risk work don’t need workers’ compensation insurance. Even someone who types at a computer all day could be diagnosed with carpal tunnel syndrome, and that could be an expensive claim to cover if they blame you, their employer, for it.
With so many different types of insurance options for businesses large and small, it might feel a bit overwhelming at first to decide which ones you really need. By carefully analysing all of your options, weighing the pros and cons, and determining which ones will definitely give you the cover that you need to feel secure and to protect your finances and your assets, you will be able to make the right choices. In the end, with the right basket of insurance policies in place to protect every aspect of your organisation, you can operate daily with more peace of mind and more confidence.
Author: Oliver Curtis
Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.