Starting a business is a hard process to navigate. However, once you start your business, navigating through the waters of insurance can be even trickier. Your policy should cover the most common disasters you expect to encounter over the course of your business, but sometimes incidents can go over looked. These overlooked events can become highly consequential if not covered by insurance. So, to be on the safe side, check out these five things you may not have known your business insurance could cover.
- Product Recalls
One of the biggest headaches in business is product recalls. You produce something, only to find out that one of the materials used was recalled. It may sound like you will lose a lot of money and time, but opting for Product Liability Insurance can prevent losses. Considered part of a General Liability policy, Product Liability Insurance can help you recover a wide range of costs from advertising and promotional costs of launching the recall, shipping costs to collect recalled products, and the destruction and replacement of contaminated products.
- Death of a Significant Employee
Companies such as Corporate Business Solutions suggest that you should protect all assets of your business and your employees are one of them.
If a key employee of your company, such as a cofounder, passes away unexpectedly, your business could take a huge hit. Chances are that your business might not be able to function properly without your key man, which means a loss of money. In this case, Key Person Insurance (visit this page to learn more about this) can work like a life insurance policy for businesses. It can help your business by providing the coverage you need to replace the employee. Plus, the insurance can be used to find and hire a replacement. It can also be used to pay for any outstanding debts.
The insurance also covers the cost of distributing money to investors, paying severances to employees and even monies associated with closing down the business.
- Random Demands
This may sound like something from the movies, but kidnapping does occur in businesses especially when they are successful. This insurance can be added to a Professional Liability Insurance Police and covers the money to pay off kidnappers so that your business can go back to its daily activities. It is especially beneficial for companies that conduct business in areas of political and regional conflict.
- Accidental Destruction of the Environment
Not everyone is perfect and sometimes your business activities can accidentally harm the environment. When this happens, you are liable for damages caused by your company’s smokes, vapors, fumes, acids, or waste materials. However, with Sudden and Accidental Pollution coverage in your insurance, you can prevent some of the costs associated with your accidental pollution.
- Spoilage of Your Fridge
If you run a restaurant, grocery store, or florist you may have a fridge full of perishable goods. If these materials perish, your business takes a huge hit. Therefore, some commercial property insurance policies have coverage for spoilers to replace goods when heating or cooling equipment fails or if the power goes out.
You should know everything you can about what your insurance policy can cover. Overlooking one of these could create a disastrous and costly incident for your company.
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.