More than 40% of businesses will experience an insurance claim over the next ten years. And that can be a devastating situation for companies that don’t have adequate coverage that protects them from various scenarios.
Even though it’s easy to look at business insurance as an expense to be minimized, once a situation arises that puts the company in a liable position, Virginia business owners that take out a more comprehensive insurance plan usually breathe a sigh of relief, realizing that the investment into protecting the business was definitely worth it.
But even though it’s clear that business insurance for Virginia based businesses is essential (and in many cases mandatory), you might not be entirely sure what types of business insurance you should take out.
With that in mind, let’s explore five must-have types of insurance that you should strongly consider for your Virginia-based business.
Business Owner’s Policy (BOP)
The Business Owner’s Policy (BOP) is the standard insurance that most small companies in Virginia end up taking out. It’s incredibly convenient, offers comprehensive coverage, and is an overall good starting point that will give you more peace of mind and protect you from some of the more basic risks that your company might face in the future.
The BOP comprises three essential insurance coverages, each offering protection in a critical area that might provide significant challenges in case something goes wrong.
First, you’ve got general liability insurance, which protects you from claims about bodily injury or property damage to someone else. These kinds of situations can sometimes be outside of your control, but the legal fees and potential settlements could bring any business to the brink of bankruptcy. Luckily, general liability insurance can provide adequate protection.
Then there’s the business income insurance that will help you maintain cash flow if your income is lost due to property or other damage. When you can’t operate but need to cover overhead costs and pay wages, this insurance can be an absolute lifesaver.
The final part of the Business Owner’s Insurance (BOP) is the commercial property insurance, which offers coverage for your building (owned or rented), as well as any equipment that you need for operating the business.
In Virginia, this type of insurance can keep your business protected in case someone suffers an injury on your premises. For instance, if a customer falls because of a wet floor, that could constitute grounds for a suit, and having insurance will keep you covered.
The same applies if your employees or representatives damage the property of your customers. It could be their property stored on your premises or damage that your employees cause on your customer’s property.
Workers’ Comp Insurance
In Virginia, all businesses must have workers’ compensation insurance, which covers employees if they suffer an injury or health issues from circumstances related to work.
Some of the things that the insurance covers include medical bills, ongoing care, and lost wages while missing work. The coverage consists of things like physical therapy, medications, medical consultations, and more, providing protection for your employees and the company as well.
There’s a reason this type of insurance is mandatory. Without it, companies could fail to adequately provide for their employees at a time when they are the most in need. Workers’ comp insurance provides a safety net that doesn’t require the company to drain their own resources when helping employees recover, ensuring that they get the necessary treatment options and adequate time to recover.
Commercial Auto Insurance
If your business relies on vehicles for operating, you should consider getting Virginia commercial auto insurance, which can offer protection from losses that you might incur from various unexpected events.
For instance, if your car breaks down and requires towing, if your employees can’t work because of vehicle failure, the vehicles are damaged, or even if you incur legal or medical fees related to your commercial vehicles, this type of insurance can offer protection and help compensate for any damages.
Data Breach Insurance
Data breaches are one of the most prominent issues faced by businesses today. And companies in Virginia are no different, with the risks of data becoming stolen as big as ever.
But while you can implement various safety features to mitigate some of the risks, you should still strongly consider data breach insurance, which can cover costs for dealing with the impact of such an event occurring.
Notifying the people affected and running public campaigns to repair your reputation can be costly. But with breach insurance, you will have the resources to develop an effective and timely plan to deal with the situation as best as possible.
Work Liability Insurance
Mistakes and negligence can occur at any company. Whether it’s a job done poorly or done late, sometimes you won’t be able to provide outstanding services to your clients.
And when that happens, you might have to deal with legal issues that require you to compensate your customers accordingly. Work liability insurance can offer protection in these situations.
If you’re a Virginia-based business, you have many options for insurance to consider. But while you might be tempted to only go for the mandatory options, getting more comprehensive insurance can give you peace of mind and ensure that your business won’t suffer devastating losses no matter what might happen.