subject: What Kind Of Insurance Does My Business Need? [print this page] What Kind Of Insurance Does My Business Need?
Starting up a business is usually quite expensive. Not only does one need the money to purchase those initial supplies so necessary for day-to-day work, but also there are countless small expenses that must be taken care of before one can put up an "open for business" sign. It would be a shame, then, for any sort of accident to ruin such an investment. The best way to avoid this, of course, is to purchase business insurance. Amongst the most common sorts to purchase before opening are property insurance, errors and omissions insurance, and workers' compensation insurance.
Property Insurance
If your business is in a building of any sort, or has any kind of equipment, it would be wise to purchase some sort of property coverage. You may need to insure the physical structure; the general items needed for your work, or even specialized equipment. Unlike most sorts of insurance, an expert should usually handle property insurance for businesses. Certain sorts of equipment, for example, may need their own specialized policies, while others may be grouped in with the belongings within the structure.
Errors and Omissions Insurance
Errors and Omissions Insurance (E&O) may go by a number of different names, depending on the industry. Whether it is called liability insurance, malpractice insurance, or any other name, though, the basic premise remains the same: it protects a company from its own mistakes. Whether a shortcoming is real or merely perceived, every business will eventually have a dissatisfied customer. From time to time, these clients will become litigious. By purchasing strong E&O coverage, a business may be protected from the massive penalties that may be assigned from a negative ruling. This sort of policy can allow a business to act as it sees fit without constantly having to fear the specter of a lawsuit.
Workers' Compensation
Your employees are your most valuable asset, and should be treated as such. If your employees are injured, it will be your responsibility as a business owner to pay for the damage caused by your business. Having worker's compensation insurance helps your business in two waysit ensures that the money will be on hand to help your employee recover, and it protects your business from having to pay out the full amount of recovery. Given the likelihood of a workplace accident, it would be negligent not to invest in this sort of policy.
By purchasing workers' compensation insurance, errors and omissions insurance, and property insurance, you can help to protect your business investments. Not only can you be protected if the worst happens, but you can operate knowing that you have something of a safety net in the case of an unfortunate situation. While owning a business always carries a risk, it is wise to minimize that risk as much as possible.
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