How to Avoid Financial Ruin in the Future
Businesses need several different types of insurance to protect them from financial ruin. It is important to protect your business with different types of insurance that will keep you and your business protected in several key ways.
Importance of Property Insurance
Property insurance will protect your building and the supplies within it if there is a robbery or fire. Furthermore, this insurance also will help if your store has been vandalized or if there is smoke damage to the property or items within it. Property insurance protects you if items like office equipment or tools were lost or damaged. This type of insurance is incredibly important, especially if your business is located in a large city or less-than-ideal neighborhood.
Importance of Liability Insurance
Another type of insurance every business needs is general liability insurance. This insurance protects your business from customers or other people who are trying to sue you for reasons relating to your products. Proper liability insurance can save you from financial ruin. Among other things, liability insurance will protect you if you sold defective products or if someone is suing you or your employee for bodily harm. Of all the types of insurance for small businesses, a 2010 survey, found companies spend more on liability insurance than on any other type of insurance, an average of $1.75 in premiums for every $1,000 in revenue.
Importance of Worker’s Compensation Insurance
This type of insurance will help your business in case an employee is injured while working. This insurance will give the employee benefits and money to help with medical bills and other expenses. Businesses need this insurance because workers cannot sue you if they accept the benefits of worker’s compensation. This frees you from potential legal disasters. Like liability insurance, worker’s comp insurance proves to be incredibly important. It is the second more purchased insurace, according to the 2010 study.
Importance of Data Breach Insurance
Most companies have confidential information on their servers along with private information about employees that they have to keep secured. This insurance will protect your business in case this confidential data is breached and stolen. While this insurance is not quite as common as the other types of insurance, it is growing in popularity with the increase in technology use.
Importance of Commercial Auto Insurance
If your company has cars, vans, or trucks that it uses, they need to be protected with this insurance. It will help you if one of your company’s vehicles crashes or is damaged. You should also make sure that employees who use their cars for business operations are protected. There are usually non-owned auto liability options for this situation.
Businesses and individuals alike all can benefit greatly from different kinds of insurance. In order to find the best insurance, you need to do research, and see what companies offer the types of insurance you need.
About the Author
Kandace Heller is a freelance writer. Her favorite things to write about are health and fashion, but she will write about just about anything. For those interested in Draper insurance or Sandy insurance, Kandace suggests PFG Insurance Agency.
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