7 Types of Insurance Policies Every Business Needs to Have

When you own an enterprise, no matter how small or big, protecting it from all types of risk is among the most crucial things you could do. But there are several insurance plans and policies to choose from. Hence, you may be wondering which ones your business really needs.

Don't worry about it. We can help you out with that. Because no two organizations are alike, just as no two individuals are alike, whenever it concerns ensuring your enterprise, there is never a one-size-fits-all solution.  

Depending on the industry, you may need various types of business insurance. For instance, a construction company is very distinct from a beauty parlor or a supermarket.

At the very least, you need to get these kinds of business insurance that cover the risks that come with operating a company:

Note: Please keep in mind that the price of such insurances and the coverage types you need shall depend on how your business works, how big it is, and what kind of firm you run.

Seven important kinds of insurance you really need for your business

Insurance is extremely important and the COVID-19 pandemic has created a stark interconnection between what could happen and what people want. 

It has had a big effect on the world, brought attention to the value of life, and put the spotlight back on clients and what they want and need from the individuals and businesses they work with.

Yes, in these tumultuous times, there are always threats in the industry, but you don't have to reimburse for each one. There are various business insurance types to cover your losses. Check out these most popular seven types predicated on what you do for a living.

1. Liability insurance

Liability insurance should be there to better shield you from allegations that may come up because of injury or damage induced by your company, its product lines, or its location. Liability insurance comes in many forms:

a. General liability insurance

It is a coverage type, which businesses require to safeguard themselves from legalized liabilities for injuries or damages to 3rd parties, inclusive of advertising and personal injuries, alongside any injuries and damages, which happen due to your business's operational processes.

b. Public liability insurance

It protects you and your company against any damages or losses caused to a third party (anyone apart from you, the insured individual or company, and the insurance agency) on the premises.

c. Professional liability insurance

It helps protect you as well as your business from negligence claims, mistakes, or exclusions on the part of the professional. And it's most helpful for experts such as engineers, technicians, consultants, architects, lawyers, construction designers, doctors, and accounting professionals.

d. Management liability insurance

It is a type of policy that covers your firm's management teams, executives, and officers from situations, which aren't normally covered by a general liability or public policy, like being accused of improper conduct.

e. Contractual liability insurance

This protects your business against contract-related fines or penalties or the risks your business takes on when you sign contracts of any kind, such a rental agreement, lease, or other standard business contracts. This will help make payments on things such as lost money and legal fees.

2. Property insurance 

Property insurance protects you if you lose, damage or someone steals your business assets or their components. This is true whether you own or rent your commercial space.

Building insurance protects shops, structures, office buildings, and other commercial establishments from damage caused by fires, natural disasters, burglaries, as well as other things.

a. Consequential loss insurance

A fire insurance policy pays for costs related to property damage caused by a fire. So, if a fire damages your store, it will allow you to pay for any damage to your company or organization or income that could be caused by the losses. 

b. Signboard insurance

This protects your firm from things like natural disasters, fire, and stealing that could cause your signages and outdoor billboards to get lost or damaged. It also protects you from legal trouble if the signboard causes damage to someone else.

c. Plate glass insurance

It is a type of policy that protects your business from damage or breakage to huge glass panels on your office properties, such as store windows, glass walls, transparent facades, and more.

d. Burglary insurance

This insurance policy covers you if money, pieces of jewelry, or other precious assets are stolen, or if any losses and harm are incurred by a burglary.

3. Commercial vehicle insurance

Commercial vehicle insurance will pay losses induced to or by a commercial automobile and its owner-driver in circumstances such as fatal crashes, accidents, natural disasters, fires, etc.

This coverage is important if your company purchases one or more vehicles or uses them, like taxis. 

This kind of liability coverage encompasses vehicles that carry people (like taxis, cars, buses, etc.), vehicles that carry goods (like lorries, tempos, trucks, etc.), as well as any other special vehicles in use for agriculture, quarrying, or building.

Commercial vehicle insurance is required for all commercial vehicles, including auto-rickshaws, taxis, city buses, tractors, advertising vans, and lorries, among others.

a. Truck insurance

It is a form of commercial vehicle insurance plan that is made to fit trucks used for business reasons, such as for deliveries, pick-ups, and transporting goods, among other things. 

Truck insurance is crucial for any company because it pays for any harm to a company truck caused by things like accidents, collisions, natural disasters, fires, and thefts.

If you operate a company, you probably have at least one and possibly more than one truck. In such cases, CoverWallet commercial truck insurance can help.

Since a truck is a component of your company's assets, it's important to make sure it's protected and covered so that your business shouldn't have to deal with unexpected losses if something bad happens.

Possessing truck insurance means that if your business loses money because of or because of your truck, the insurance will pay for it. 

This also indicates you'll avert any shutdowns, keep making money, and be able to use that money to help your business grow.

By law, you have to have at least a Liability Only policy in place, which protects 3rd parties from any losses or damages your truck could cause. But because trucks can be in danger, it's always best to have a basic package policy to protect both the truck as well as the owner-driver.

b. Taxi insurance

By law, you or your organization must buy at least a 3rd-party liability-only plan when you own a commercial taxi. 

This protects your business financially, maintains your profit margin, and cuts down on shutdowns if your cab causes loss or damage to the property, individual, or vehicle of a 3rd party.

Risks happen to businesses all the time, and if your business has a lot of assets, like a lot of taxis, the risk goes up. In these situations, it is smart to buy a basic or exhaustive package plan for your cabs or taxi services. 

This will safeguard your commercial cab and the owner-driver from damages caused by natural disasters, car crashes, terrorist activities, fires, burglaries, and other unexpected events.

When your cab has valid insurance, it shows your consumers and travelers that you are willing to take the responsibility seriously.

A cab or taxi that is insured protects your business from unexpected setbacks or downtime so that you can use your time and money to expand your brand.

4. Money and compensation insurance

Money insurance helps you safeguard the money and financial transactions of your business. This includes cash, checks, draughts, and postal orders. 

Your business will be covered if your money is stolen, lost, or damaged by accident when it is in transportation or locked up in a safe or cash register.

The compensation plan is for companies to use when giving their workers remuneration for accidents happening at the work. It enables workers to get the treatment they require if they get sick at work, get hurt on the job, become disabled, or die because of a disaster.

5. Fidelity insurance

An insurance policy that guarantees honesty helps protect you as well as your business from any immediate loss caused by your workers' dishonest actions while they are working for you. 

So, fidelity insurance protects your company from any budgetary costs that come from employees who aren't honest, steal, or commit fraud.

6. Electronic equipment insurance

This will help shield you if any of your company's electronic devices get stolen or seriously damaged (which can include systems software). 

This involves the price of fixing or replacing the hardware, the price of losing or damaging any data sources, and the charge of working more when your machinery isn't working.

7. Group health insurance

Employee health insurance is a plan that covers all of the employees of the company under one plan, with the employer paying the premium. 

Compared to individual insurance plans, the cost of this is much lower, and it also helps employers save money on taxes. This makes it good both for the employers and employees.

The COVID-19 Group Protection is a healthcare insurance policy that is meant to cover workers during the coronavirus disease outbreak. It pays for any medical costs they might have while receiving treatment for COVID-19.

Conclusion

Insurance for a company or organization is a support system in case there are sudden financial losses. Think about insurance as a long-term way to keep your business safe.

This is a brief summary of the most important types of insurance your business needs, but it is not a complete list. It’s best to seek assistance from an expert to determine which business insurance policy is best for you.