There are lots of things to worry about when setting up a new business, but one issue you need to pay attention to is business insurance. It’s a legal requirement for companies to be insured when they’re active, so you need to organize this in the early stages of establishing your business. If this is all new to you, you may be wondering just how business insurance can benefit your company, so below are some of the key types of coverage usually included, and how they will protect your business.
1. Employee Liability
If you’re going to employ staff to work for you, this is legally required to be included as part of your insurance policy. Employee liability will protect your business against issues such as injury on-site or falling sick as a result of carrying out their duties. This insurance will help to cover the cost of any claims made against your business in these circumstances. This can also help to cover legal expenses should this be necessary.
2. Public Liability
This is a similar type of cover to the above, only it focuses on if there’s a claim made against you by a member of the public. This could be a customer who gets injured on your business premises or accidental damage to their property that your company is responsible for. You can learn more about this and the other types of coverage listed here by speaking to an expert business insurance provider, like the representatives at State Farm Agent Wilmington DE.
3. Professional Indemnity
If your business offers advice and guidance to clients, such as a consultancy firm, for example, then you’ll want to include this in your insurance policy. Professional indemnity coverage can protect your company if a client claims that their reputation or business was damaged as a result of advice you gave to them.
4. Business Interruption
No one can predict the future, and even if you’re someone who has excellent business savvy, some things are simply out of your control. It could be that your premises catches fire, or another circumstance that wasn’t your fault has meant your operations can’t continue normally. This is where business interruption can help you, as this can provide financial support if your business loses sales.
5. Product Liability
If your products malfunction or cause injury to a customer, this could result in a claim made against your business. Even if you’re not the manufacturer of those products, you can still be liable for customers to claim against you. Therefore, this is a smart cover to have if your business sell various products, whether you make them or not.
6. Business Contents Cover
Finally, you should make sure that business contents cover is included in your policy as it can protect your business equipment from theft and damage. This could be items such as computers, tools, vehicles, or anything else that is instrumental to your operations, and could be costly to replace.
If you want to make sure your business is protected, remember to organize your business insurance as soon as possible.
