Running a business can be an incredibly fulfilling experience, but it can also be risky because you might lose all your capital if the business flops or if your assets are destroyed by a fire. There are many other risks your business faces, so it is crucial you have a risk management plan for your business. This will help you identify risks and put in place measures to protect the business against those risks. With Smart Business Insurance, you can be assured of protecting your business effectively against all kinds of risks.
Risks Businesses Face Everyday
i) Property Loss and Damage
This is a risk that every business faces. Property can be lost through theft or damaged in fire incidents, hurricanes and other similar types of disasters. To protect your business from financial losses, it is crucial you get a suitable insurance policy to protect the business. Commercial property insurance can provide your business with sufficient coverage against liabilities brought about by loss or damage to your property.
Personal injury lawsuits can bring your business to its knees. For this reason, it is crucial you purchase general or public liability insurance. This policy will protect your business from financial losses in case an injury lawsuit is filed against the business. The public liability insurance policy will pay all the legal fees needed to fight the suit and pay the compensation awarded by the court, in case you lose the case. This means that you will not have to use your working capital or liquidate assets to pay the legal fees or compensation awarded by the court.
iii) Auto Accidents
If you own one or more commercial vehicles you normally use to transport goods from one place to another, you run the risk of experiencing significant losses if one of your vehicles gets into an accident. This is because the cargo the truck or van is carrying will be lost or damaged severely. The vehicle itself will also be damaged severely. If you have commercial property insurance, however, you will not need to worry about all these as the insurance will pay for all the losses you experience.
iv) Workers Compensation Insurance
If you have employed one or more workers in your business, it is crucial you sign them up for workers compensation insurance. This is a special type of insurance that protects workers and employers. Workers can expect to have all their medical bills sorted out by the insurer in case they are injured at the workplace. If they suffer temporary disability, the insurer will also pay temporary disability benefits to ensure the worker can continue to live a decent life. On the other hand, the employer is protected from lawsuits that may be filed by injured workers. As a business owner and employer, you need to have workers compensation insurance.
Choosing the Right Policy
While insurance coverage is the bread and butter of risk management, you need to know that every insurance policy is different. For instance, the liabilities covered by a policy as well as the extent of liability coverage differ greatly from one policy to the next. Therefore, you have to read exclusion and inclusion clauses to find out exactly what the policy covers. This will enable you to make decisions that are informed. Be sure to also compare the premiums charged by different insurers for the type of coverage you require for your business. This will help you find the best deal on the market.
Lastly, it is recommended you consult an expert to help you assess your business coverage needs. This is because you want to base all your decisions on accurate information.