Starting your own business can be exciting in the beginning but certain risks may come along the way if you do not shield it with protection. How do you plan to maintain the stability and strength of your company in the long run?
Insurance is one of the top things you have to consider if you are planning to start your own business. It can benefit not just the company but the people as well. The risks becomes visible the moment you launch your business and it is important to place the right insurance policies for security purposes. Here are the seven important types of insurance that you have to buy to protect your company:
- Life Insurance
Life insurance is one of the most important policies that a company must have. Usually, this type of insurance is offered by huge businesses and corporations. You do not want your family to suffer and cry over an untimely death. You do not want them to leave without getting secured. It is important to have Life Insurance because a certain individual who faces death will receive beneficiary of money and assistance. This type of insurance may also apply to those suffering from critical injuries/illnesses that needs major guidance and help.
- Long-term Disability Insurance
Accidents can happen anytime and anywhere. Medical expenses may increase because of this. There are times when a certain individual loses his ability to perform and work due to physical injury/disability. With Long-term Disability Insurance, an employee will be able to protect his/her right to loss of income.
- Health Insurance
We all know that health is very important and it should not be taken for granted. In most countries, it is compulsory to have Health Insurance. A hardworking employee may be doing great in his/her job but sometimes, our health gets in the way and starts to hinder our capabilities because of unexpected sickness. Through health insurance, workers/employees will be able to have their right to medical benefits in case they suffer from any illness. Some companies would offer health cards which may be used to pay for charges and expenses for specific medical conditions. This is a very necessary and helpful insurance for all employers and employees.
- Auto Insurance
Insurance for cars, motors and other vehicles are very important. This is usually given by huge businesses that offers transportation. Cargo and shipping companies are usually the ones covering this type of insurance. Auto Insurance is really important to gain and supply care for broken and damaged office vehicles.
- Professional Liability Insurance
There are different types of Liability Insurance. Usually, the Professional Liability Insurance is the one being used by companies because of its strong effect. Professional Liability Insurance is responsible for your protection against people who are making claims and accusations to you and your company with regards to negligent services and the like. Take note that it is only during the whole period of insurance that the policy will take effect, not before or after.
- Property Insurance
Property insurance is a policy that provides financial reimbursement to the owner or renter of a structure and its contents, in the event of damage or theft. This means that if your property faces unexpected damages because of storm and other natural disasters, then your property will be insured with benefits including reconstruction and restoration.
- Business Interruption Insurance
This is somehow connected to Property Insurance as the policy will also take effect when a certain disaster hits your business property. When a catastrophic event occur, your business will most likely get affected and the workers will not be able to work and because of that, problems may come along the way. Through Business Interruption Insurance, you and your workers will be compensated for the lost of your income during those troubled times.
All of the insurance policies listed above may apply to either small or big businesses. It will only depend on the needs of your company and people. Even if you think that a certain type of insurance will fit your company, it is still best to consult a trusted insurance agent to get a professional advice. It is also important to make a thorough research so that you would know the pros and cons of having an insurance. By having the perfect kind of insurance policy, your business will be able to avoid unnecessary problems and you will be able to move forward and succeed.
Mark Aldrin Hipolito is a resident writer for Insurance Advisernet, one of Australia’s largest and most respected General Insurance businesses in Australia and New Zealand. In line with the association’s goal, Mark writes to raise awareness and inform future business owners as well about the insurance policies that they may consider.