The insurance world is nothing if extremely vast. There’s car insurance, life insurance, home insurance, health insurance and the list goes on and on. But, what about insurance for businesses? With all the different types of insurance plans out there, how do you know what areas your business should be insured in? Well, there are several types of insurance plans available for businesses, but it’s ultimately up to you to decide what your company needs in terms of coverage.
Types of Business Insurance
Workers Compensation: The purpose of workmen’s comp, as it is commonly referred to, is to provide compensation to workers that are injured while on the job. The details for this type of insurance policy vary from plan to plan, however some of the areas it covers include:
- Salary/wage replacement
- Medical expense reimbursement
- Compensation for economic losses, damages related to pain and suffering
- Settlements to the dependents of the insured in the event of a fatal work-related accident
Workers compensation is a crucial type of insurance for businesses to have. In fact, the workers compensation laws in the United States are almost universal, enforcing just about all employers to carry this type of insurance in some capacity for their employees.
Liability Insurance: This type of insurance provides protection to businesses against certain claims pertaining to their legal rights as employees ever being compromised in any way. Under this policy, businesses are protected against lawsuits filed by their employees such as:
- Sexual harassment violations
- Inflection of emotional distress
- Unwillingness to employ or promote
- Breach of contract
- Discrimination against age, sex, race etc.
- Wrongful employment practices
The cost for liability insurance is dependent on a few factors including the size of your company, the number of employees, as well as certain risk factors that may or may not be involved in the working environment. The best type of policy a business can purchase is one which will cover just about every type of employee such as full-time, part-time, temporary or contract.
Life Insurance: Most people associate life insurance with the financial protection of their family in the event of their death, however businesses owners also need to consider their companies should such a scenario occur. Life insurance policies provide economic sustenance for businesses to continue operating should the owner or a key executive pass on.
Business Owners Policy: This policy is better suited for small to medium sized businesses, as it combines both liability and property insurance into one package. It’s also fairly priced which makes it more appealing for smaller businesses as it eliminates the need to buy separate insurance policies for liability and property. There are some eligibility requirements for a business owner’s policy which include:
There also some other factors which will affect the cost for this type of insurance such as the location, security or financial stability of the business.
As a business owner, you cannot afford to have your company or employees uninsured in any form. As unpredictable as life as is, you can take comfort in the assurance of coverage these types of business insurance policies can provide in times of personal and financial need.