The procurement of commercial insurance is one of an entrepreneur’s most common shortcomings. It’s an easy mistake. Money is tight and with so many things in mind, shielding the business from the possibility of a distant tragedy doesn’t seem significant. But then, you’ve worked so hard to build that business. You have to realize that it wouldn’t take too much to destroy it. Below is a list of insurance coverage that most companies require.
There are basic business insurance packages offered for companies and they mostly cover all the necessities such as employee benefits, general liabilities, equipment insurance, and property or casualty protection. Many of these insurances cover all of these points under its umbrella. But other than these basic needs, you must also consider buying other types of insurances.
Worker’s Compensation Insurance
This insurance is for employees that require treatment and recovery due to medical issues in the workplace. Works suffer pay cuts if they get injured at work. This insurance is required in all US states because it protects the employee from such instances.
The worker’s comp insurance includes a three-part optional and two-part mandatory components. The second half covers the company’s liability, which applies to the business owner if an employee is permanently disabled or killed while working. They are required to pay the employee’s spouse or children.
The first part includes medical expenses and the employee’s lost wages. Employment practices insuring a worker against litigation resulting from sexual harassment, discrimination, and similar lawsuits are also part of the workers’ compensation policy.
Generally, the employer sets the workers’ compensation premiums, and the company buys the insurance. The minimum amount a company needs is regulated by state law. If you want to get this coverage, be sure to pick a licensed and approved insurance provider in your state.
Comprehensive General Liability Insurance
Comprehensive general liability insurance will protect an organization and its facilities from injuries, accidents, and litigation. For example, if a visiting salesperson slips on a banana peel during his visit and hurts his or her knees, then the general liability will cover his or her case against you.
For example, if your company installs windows for residential and commercial clients. If anything goes wrong with any of them, then all the damages resulting to the issue will be paid by the comprehensive general liability insurance.
Comprehensive general liability insurances usually have multiple exclusions. Make sure that you understand what’s covered and what isn’t. You may have to buy additional liability policies for specific issues. For example, to cover any damage caused by the errors in the work of your contractors, you may have to purchase the mistakes and omissions protection coverage.
These are two of the most important commercial insurance that you need for your business. You may also add an auto insurance coverage into the mix if you use a lot of delivery vans and company vehicles to move your business. It’s important that you find the areas of your business that require protection so you can be assured that it will function for an extended period of time even if some untoward incidents occur.