- Every business owner must have adequate insurance coverage in order to comply with the law and avoid any unexpected issues.
Who wants to keep paying for something with no return on investment? Small businesses need insurance just as much as global corporates because of the benefits that suitable insurance covers. There are a lot of different types of insurance to cover various problems businesses face.
Risks are everywhere, and they can grind your business to a halt! The worst could happen to your business, employees, or equipment. Also, you could always linger in fear that you fail to take rewarding risks.
Why do you need insurance for your business? The main benefits that you stand to gain through insurance as a small business owner include:
- Protecting your business
- Protecting your employees
- Protecting your equipment
- Growing your business without a worry
There is an old saying: “If you want to protect your business, then protect your employees.”
Most people think of insurance as something for their cars or homes. But, protecting a business and its employees is important too. There are many types of insurance policies that can benefit a small business, such as:
- Property and Casualty (P&C) insurance
- Health insurance
- Workers’ compensation
What is P&C Insurance?
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P&C insurance covers you against loss of property or harm to people hurt by the business. There are two basic types of policies:
- Commercial General Liability (CGL)
- Business Auto Coverage
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Commercial General Liability (CGL)
This insurance package covers you for bodily injury and property damage that may happen on your premises or as a result of your products, operations, or the conduct of your business.
It also provides coverage if someone sues you because of this injury or damage. The basic policy contains two types of insurance:
- Bodily injury liability
- Property damage liability
- Bodily injury liability may include medical payments for your employees who’re injured on the job. Medical payments coverage will help them to pay their bills if they need immediate care after an accident, regardless of legal responsibility for the incident.
This coverage is optional under a CGL policy.
- Property damage liability covers your legal responsibility for injury or property damage caused to others.
Business Auto Coverage
This insurance package is crucial because you need it to protect your business and its financial future. It provides limited legal liability protection for vehicles used to do business, such as a delivery truck, taxi cab, or courtesy car.
- Commercial Auto Policy: This insurance policy covers your vehicles against physical damage and legal liability.
The most common business auto coverage is “broad form” which pays for damage to or theft of autos, trucks, vans, trailers, etc., owned by the insured business.
Legal liability means being sued for bodily injury or property damage caused by your company’s vehicle.
A commercial auto policy also covers you against loss when the business is closed. That means when you are not at work and cannot answer questions about what happened to your commercial vehicle, nobody will determine whether your policy pays for the loss.
Business auto coverage also protects employees who drive their personal autos in connection with company business. It includes rides for customers or other third parties if they sit in the front seat of your vehicle. All these features are part of the basic business auto policy.
Workers’ Compensation
If you want to protect your business, protect your employees.
Workers’ compensation insurance covers injuries and illnesses suffered by employees in the course of their employment. It also provides wage replacement to ensure that workers can pay for the cost of living while they’re unable to work.
States have different laws governing workers’ compensation. The laws protect employees and employers from litigation arising from workplace injuries or illness.
In some states, if you don’t carry it as a business owner, your employees can sue you for negligence or safety problems at your place of employment.
Workers’ compensation provides disability coverage for total temporary disabling injury or total permanent disability that prevents you from working in your usual job. It also provides medical benefits coverage, which helps pay for the treatment of your injury or illness when it occurs.
Final Word:
You can buy workers’ compensation in all states. However, employers are required to carry it in most cases. Please follow us for more information if you’re looking for information related to small business insurance in the US.