Types of Insurance You Should Know About as a Business Owner
Running any type of business presents its risks and challenges. However, there are ways to minimise the risks and protect your company if something does go wrong. Insurance is both a legal requirement and a general necessity in business. However, do you know which types of insurance your business needs?
Here, you’ll discover more about the different types of insurance you’ll definitely want to consider investing in.
Home business insurance
If you’re running your business from home, it’s important to realise that your home insurance policy won’t typically cover business equipment. Therefore, it’s a good idea to contact your provider to see which additional cover you might need. It’s more than likely that you will need to take out separate insurance for your business equipment.
If you’re buying new cars to add to your business fleet, GAP insurance is definitely something you’ll want to consider. It provides you with the difference between what your car is worth and the amount you paid for it.
Often, when you have an accident, the insurer will only pay out what the vehicle is worth at the current time. With new cars, the depreciation value as soon as you drive the car out of the dealership can be pretty steep. So, there’s always a risk you may not get the amount back that you actually paid for the car if it’s written off. With GAP insurance however, you’ll receive the funds your insurer won’t pay, ensuring you to can replace the car.
Professional Liability insurance
Commonly referred to as Professional Indemnity Insurance, Professional Liability insurance is crucial for businesses offering advice, services or consultancy. Mistakes can happen and if your services have caused a client to experience a financial loss, they could place a claim against you. Professional Liability insurance protects you against this, ensuring you don’t need to pay huge legal fees.
Business Interruption insurance
If your business is damaged by a flood or fire for example, it’s going to disrupt your operations. Business Interruption insurance is there to accommodate for the time lost due to material damage. However, you should also have adequate contents insurance too.
Each policy differs between insurers, so it’s important to make sure you’re choosing the best policy to fit your business needs. Always compare the different policies on offer before deciding which one is right for you.
The above are the main types of insurance you’ll want to consider investing in for your business. You need to consider every eventuality and whether you’d be financially able to pay for legal fees or damages if they were to occur. If you wouldn’t be able to, insurance policies, like the ones above, can help.