How to Pick the Best Insurance For Your Business
by Mashum Mollah Insurance 24 June 2017
When you start a business you invest not only money into the venture but also time and effort. Thus, it is essential to protect your business. With the many other things on your to-do list, insurance may not be your top priority but it does deserve attention. As you can see on this website, there are many different types of insurance available. Hence, here are a few questions, the answers to which could help determine which the best insurance plan for your business is.
Does your firm employ people?
If you are the CEO/ accountant/ product manager and the delivery team all rolled into one, you do not need to worry about employee compensation. However, if you employ even one part-time or full-time employee, you will need an employer’s liability insurance. This is necessary even in case you employ interns, volunteers, or contract staff. This type of insurance covers worker compensation in the case of illnesses or disability.
Does working at your firm involve the risk of physical damage or accidents?
Some types of work have a higher risk of injury as compared to others. For example, if you run a stock trading company, your employees have a low risk of accidents while if you have a construction company, your workers are at a much higher risk for personal injuries. Thus, such businesses must have insurance that covers them and their employees against any injuries that may occur on-site.
Do you work with expensive equipment?
When it comes to mechanical and electrical equipment, you need to consider not only the cost of buying the machine and maintaining it but also the cost of repairing it in the case of a breakdown. In many cases, repairing a machine can be almost as expensive as buying a new one. Thus, if you work with expensive machinery, it is a wise idea to get the insurance that covers your tools and equipment. Property insurance covers equipment and assets in the case of them being lost, stolen, or damaged. This type of insurance also covers buildings when they are under construction.
Does your work involve offering advice?
Words can often be misunderstood. If you are in the business of advising people on any kind of matters, as an accountant, for example, this can create quite a problem. It can also be a problem for your firm if someone questions your work standards. Thus, in such professions, it is good to have professional indemnity insurance. For some professions, this may even be a legal requirement.
Do you have any vehicles that are used solely for business purposes?
Just as you insure your personal vehicles, you must also ensure any vehicle that is used by your business. This could include delivery vans and bikes, taxis, pickup trucks, etc. Along with vehicle insurance, you will also need to ensure your firm against injury to a third party, insurance against theft and damage, and public liability insurance. Every time you deliver goods in your vehicles, you should also ensure the goods against any potential damage that might occur while in transit.