An insurance cover is critical for all businesses regardless of the size. Businesses are exposed to various risks, and the only way to deal with this is by purchasing an insurance cover. There are different types of insurance covers. If you run a small business or a start-up, an insurance broker for small businesses can help you determine the most suitable policy.
Check out the different types of insurance and why you need them;
1. General liability insurance
Any business risks getting sued, and this is where general liability insurance comes in handy. It guards companies against claims like accidents, injuries, or negligence. General liability insurance pays for property damage, legal costs, medical expenses, faulty products, and more.
2. Professional liability insurance
This type of cover protects businesses from lawsuits regarding negligence in the provision of professional services. This may involve substandard work or omissions and errors in service provision. Professional liability insurance is useful for service-based corporations and many other types of businesses.
3. Property insurance
Property insurance compensates business owners in case of damage to property or theft. Moreover, the cover enables businesses to replace damaged equipment such as computers, inventory, and equipment. The perils covered under this policy include special weather-related damages, fire, smoke, snow, lightning, and hail damages.
There are two types of property insurance covers, these are;
-All risk policies- Covers almost everything
-Peril specific policies- Covers specific perils under the policy.
4. Life insurance
Life coverage is a priceless benefit to employees in any company.
It’s a legally binding contract between the employer and the insurance firm. With this type of insurance, you pay a premium upfront and pay regular premiums over time. The policy pays a sum of money to the beneficiary when a policyholder dies.
5. Workers compensation insurance
Workers’ compensation insurance coverage is mandatory in most states. The policy covers medical costs in case of employee injuries and lost wages if a worker gets ill on the job. In simple terms, the policy covers common injuries in the workplace like slips and falls.
There are different types of workers’ compensation benefits, there are;
-Medical Care Under Workers’ Comp- -Medical care for work-related injuries and treatment of the related illnesses.
-Workers’ Comp rehabilitation benefits
-Workers’ Comp death benefits
Why hire an insurance broker?
Insurance brokers will guide you in choosing the right policy for your business. They will also help you search for the right products from different insurance companies, enabling you to get the best deals. What’s more? Insurance brokers have lots of knowledge of insurance policies and will recommend what fits your needs.
They also stay updated on the changes in insurance plans and legislation. And this helps avoid costly mistakes when buying an insurance cover. That’s not all, though! Insurance brokers will provide you with detailed information on the fees and commission. And help you understand how these affect your premium.
The bottom line
There are various insurance coves that you can buy for your business. Engage a professional insurance broker to guide you in picking the right cover. Moreover, choose an insurance policy with reasonable premiums and understand what’s covered beforehand.