As a business owner, you face several types of risks that may result in significant losses to your business. Having the right business insurance in place will protect you in the event of an unfortunate incident. The following are five types of business insurance policies that you must have in place to protect yourself and your business.
1. Employers’ Liability Insurance
After hiring your first employee, you are mandated to purchase an employers’ liability insurance policy. This policy offers protection to your employees if they fall sick or get injured during the course of the job. However, if your business has just one employee and the employee owns 50% or more of the share capital, or you are a sole trader, you do not need to get an employers’ liability insurance policy. If you employ part-time or seasonal workers, you must still purchase a suitable employers’ liability policy.
2. Motor Vehicle Insurance
If your business has company-owned vehicles that are used for business purposes, you are required to get an auto insurance plan to protect the vehicles against damage and collision. It is advisable to get a comprehensive auto insurance plan to cover the company vehicles. A commercial auto insurance policy protects the business against financial responsibility in case you or your employees are held liable for an accident leading to injuries to people or property.
3. Commercial Property Insurance
Commercial property insurance protects all properties or assets that are vital to the daily operation of a business. It covers the building, assets, equipment, and personal property used in the business from damages caused by theft, fires, and natural disasters.
4. Public Liability Insurance
If a visitor to your premises gets hurt in any way by any of your business-related activities, you may need public liability coverage to protect yourself from the resulting lawsuits. Some organizations require business owners to have public liability insurance before they begin operating on their premises. Public liability insurance protects a business from third-party claims for injuries to the person or damages to their property as a result of your business operations. However, it does not cover claims made by the company’s employees.
5. Industry-Specific Policies
Various professions have industry-specific insurance policies. Professional bodies commonly mandate their members to have certain insurance policies. For example, for solicitors to practice law, they are required to carry an insurance policy. It is very important to get industry-specific insurance policies as a business owner.