As a small business owner, having the right insurance coverage allows you to protect your asset. You need to find coverage that suits the individual needs of your business. Think about the industry that you are involved in, the type of business that you operate, the size of your business, and the amount of risk involved. Figuring out the clear challenges that you face will help you find the right coverage for your business.
Here is a look at the 5 basic insurance plans that you must have in place for your small business.
General Liability Coverage
As a small business owner, you are responsible for the safety of your customers, suppliers, and your property. Sometimes, accidents happen. General liability coverage protects your business if you accidentally cause bodily injury or property damage, wherein you may be sued for negligence. General liability coverage takes care of your legal fees while you go through the process. The insurance can also cover the injured party’s legal bills and any repairs to damaged property. Without proper liability coverage, your entire business could be at risk. If someone suffers a serious injury on your property, the claim may be large enough to put you out of business.
Products of Completed Operations Coverage
Products of completed operations coverage protect your business if your products cause harm. Perhaps you serve a patron some food or drink at a restaurant. After a few hours, the patron starts throwing up and becomes ill. They allege that your product gave them food poisoning and decide to sue you for damages. Perhaps your patron has too much to drink and starts a fight and causes damage. Perhaps they attempt to drive home and crash into a gate or hit someone, causing serious injuries, causing you to be held responsible. In order to cover yourself in such situations, you need products of completed operations insurance. The coverage will help you protect your assets by covering your legal fees and handling possible settlements. The insurance also includes risk mitigation advice to help prevent possible issues before they arise. You’ll also have the ability to fight what you believe are fraudulent claims.
Excess Liability Coverage
Excess liability coverage provides an extra layer of protection in the event of an emergency. If your business is sued for an amount that exceeds your traditional liability coverage, you will be left unprotected. Excess liability coverage ensures that there are no gaps in your policy. While searching for excess liability coverage, think about the risks involved with operating your business.
Assault & Battery Coverage
If you are in the hospitality industry, assault and battery coverage are extremely important. The coverage protects your business from incidents of patron violence and any issues involving your employees. Assault and battery coverage covers your business against any bodily injury and property damage that may arise due to violent acts and other forcible actions. Keep in mind that your business can be sued by victims based on violent acts that occurred both on and off your property. While alcohol is often an issue in such disputes, sometimes it’s just patrons with bad attitudes acting out. Assault and battery coverage not only covers your business against potential lawsuits, but it also helps you protect your business’s reputation and keeps employee morale high.
Professional Indemnity Coverage
If your business is based on providing a service, consider the benefits of professional indemnity insurance. Professional indemnity insurance protects your business against allegations arising from poor judgment or a negligent act in the course of your work. If a patron feels that you gave them harmful advice or poor treatment, they may sue you. Professional indemnity insurance helps you protect the integrity of your business.