Running a business comes with a host of responsibilities and challenges. Whether you are the CEO of a huge corporation or the owner of a small business, you know how important it is to keep operations running smoothly and protect yourself from liability while doing so. The best protection against liability is being informed and cautious of certain risks, but even the most careful business owner cannot completely eradicate liability. Business insurance fills the gaps and ensures that you will not be derailed if a risk comes to fruition. There are several kinds of business insurance you should know about.
The following are perhaps the four most important types of insurance for a business, so familiarizing yourself with them is the first step to finding the right policy for your company. Consider your company’s needs carefully and take the time to find the Baltimore business insurance policies that are right for you. Insurance is an investment, and you should be confident in your choice.
You might think that property insurance is only a necessity if you own the space that you use for business. On the contrary, whether you lease or own, you should have insurance protecting you from the many liabilities of working on a given property. A good business property insurance will cover any potential damage that is done to the property as well as the value of the furniture, stock, equipment and tools that are housed in the building. Without this coverage, you could be liable for costly damages, and the expenses add up quickly.
Workers’ Comp Insurance
Many business owners consider their line of work to be minimally risky and do not consider the possibility that employees could, in fact, be injured on the job. If you manage an office, for example, you might disregard the potential for injuries such as carpal tunnel. In reality, there is potential for injury in every industry, which is why companies need to invest in worker’s compensation insurance. Workers’ comp claims can be expensive for employers, but you can mitigate the potential cost of such a situation by finding a policy to cover your liability in the event of a claim.
Professional Liability Insurance
Professional liability insurance is also called errors and omissions coverage. It typically protects a business from the liability of general mistakes and failure to perform at an established standard. This is a very generalized form of insurance that is typically tailored to the specific industry and type of business you manage. It is intended to protect businesses from the expense of a negligence claim or civil suit brought by a client. It is one of the most important kinds of Baltimore business insurance your company can invest in, and it can save you from the expense of an unhappy client.
Business Interruption Insurance
It is every business owners’ worst nightmare to have disaster strike and find yourself unable to sustain operations. Disaster may come in the form of an extreme weather event or some other incident that interrupts the normal flow of business. In such cases, this form of insurance protects you from the loss of income that would result. In addition to covering lost income, this type of policy will typically cover the expenses associated with recovering from the incident, too. Needless to say, it is an important policy to have on your side if disaster were to strike.
Your business is important, and you do not want to see it derailed by the expenses of various liabilities. In addition to general carefulness, investing in a robust insurance policy is the best way to keep your company safe from the financial risks of doing business.