When you get sick or hurt, you use health insurance so your checking account isn't strained by medical bills, and business insurance does the same thing for your company.
In the event your company is damaged by a fire, weather-related event or criminal activity, this coverage can get you the funds you need to keep your business going. And this is only one type of business insurance, as there are various ways to cover your company.
Types of business insurance
Many emergencies can befall a business. In addition to tornadoes, floods and earthquakes, on-the-job employee injuries, customer injuries resulting from faulty products and private data loss can all take a toll on a company.
Insurance providers have specific policies for each of these issues. These include product liability, professional liability, property, workers' compensation and cyber insurance. All of these policies can protect your business, though you may not need all of them. If your company doesn't sell products, for instance, product liability coverage won't be necessary.
Other coverage types are useful or required for all businesses. Workers' compensation is mandatory for any company that has employees. Property insurance is useful in the event the structure of your business is damaged, as you can get funds for the necessary repairs and reduce downtime.
If you're looking for a package deal, consider a business owner's policy, or BOP insurance. This type of policy provides coverage for a variety of issues, including loss of income, property damage, vehicle and crime coverage.
Why do you need business insurance?
This coverage is particularly helpful for small-business owners, especially startups. With smaller companies that are just starting out, owners have more of a personal financial stake in the business. If you own a small business and one of the aforementioned emergencies were to occur, you don't want to exhaust your personal funds to get your business going again.
You could strain your finances. Also, if you can't supply the necessary funds, you may have to shut down for good, and you don't want to come up short in the event of something serious like a liability lawsuit.
When choosing policies, make sure you thoroughly read what is covered under your insurance. Property coverage, for example, typically doesn't include flood protection, so you'll have to purchase a separate policy.
For more information about how you can grow your business, contact Landmark Bank.
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