Did you know an e-commerce business can recover lost income because of a virus or hacker attack with the right business insurance?
You will probably face many risks when you are a business owner. Thus, consider including a range of supplemental coverage to your business owner’s policy (BOP) to cover specific risks. A business owner’s policy also called business owner’s insurance, combines liability and property coverage in one policy. This insurance policy is reasonably popular among small and medium-sized businesses, like contractors, retail stores, wholesalers, and restaurants.
But there are certain conditions the business owner must meet to qualify for a BOP. This should not dishearten you because you can still choose from a range of insurance policies that fit the requirements of small and medium-sized businesses.
Vital insurance coverage
Next Insurance offers small business owners a wide range of business insurance policies. They should purchase at least four essential business insurance which will give their business and employees ample insurance protection.
- Property insurance. This will compensate you if there is damage or loss to your business property because of theft, fire, and other risks. It covers the structure or building, office furnishings, computers, machinery, raw materials, inventory, and other items you use for operating your business. Property insurance may also cover equipment breakdown, some types of water damage, other losses, and removal of debris after a destructive event or fire.
- Liability insurance. Your customers may sue you if your business causes some harm because of a service error, disregard for the property of another person, or a defective product. A claimant may accuse you or your business of producing a hazardous environment. If your business is liable, the insurance will pay for damages, attorney’s fees, and incidental legal defense expenses, up to the limit of the policy. It can also cover the medical bills of any person injured on the business premises.
- Business auto insurance. This insurance covers the vehicles owned by your business. It will pay third parties who sustained property damage or bodily injury if the business is liable. The compensation can be up to the maximum limit of the insurance policy.
- Workers’ compensation insurance. Except for Texas, an employer in all 49 states must have this type of insurance if the business employs three or more workers. It will pay for medical care and part of the lost wages of an employee if injured at work (regardless of who was at fault). In case of the loss of an employee’s life because of work-related injuries, the insurance will compensate the family of the employee.
Other types of business insurance
Aside from the essential business insurance coverage mentioned above, you can also look at other individual insurance policies for small businesses, such as
- Professional liability/Errors and omissions insurance
- Employment practices liability insurance
- Directors and officers liability insurance
- Key employee insurance
Otherwise, consider the value of an umbrella liability policy. It will cover compensation over and above other liability coverage for a business, especially against high losses you may incur. An umbrella liability policy provides additional protection after exhausting the limits of your other business policies.
Purchase all the essential business insurance policies before considering other policies that will provide more protection for your business and employees.