If you’re a business owner wondering why they should purchase business insurance, the simple answer is that accidents can occur in any business at any time. Having business insurance protects your business and helps pay for any damages, so the company doesn’t have to.
While this may be true, it can be hard to determine which types of insurance are needed and which ones can be overlooked. To help you out, we’ve made a list of some of the different kinds of business insurance that all companies need:
1. Workers’ Compensation Insurance
There are several reasons why businesses should consider purchasing workers’ compensation insurance. One of the main reasons is that it protects your employees while at work, allowing them to be compensated if they are injured while on the premises.
Another reason this type of insurance is essential is that it can help attract employees to your business.In fact, research has shown that companies in Pennsylvania that have workers’ compensation PA are much more likely to attract good employees than those that don’t. Also,workers’ compensation PA is required by law for most businesses.
2. Public Liability Insurance
Another necessary type of insurance that all businesses need is public liability insurance. This type of insurance protects your business should one of your customers be injured on your property. As well as this, it also protects you should any of their possessions be damaged.
3. Product Liability Insurance
Product liability insurance is another type of business insurance that businesses need. It protects businesses should a customer or an employee be injured because of one of your products. This type of insurance is usually purchased alongside public liability insurance.
4. Employer’s Liability Insurance
In the U.S., all businesses that hire employees are legally required to have employer’s liability insurance. This type of insurance helps protect your business should any of your employees become unwell or injured while working for you.
5. Business Contents Insurance
If your business owns many assets, this type of insurance is essential. Business contents insurance protects the physical contents of your business, such as computers, machines, tools, and mechanical equipment.
6. Cyber Insurance
Almost all businesses operate online. If your company does, then it’s advisable to purchase cyber insurance. This type of insurance protects your business from threats such as cyber hacks and data breaches.
7. Business Interruption Insurance
Over the last few years, thanks to the COVID-19 pandemic, many businesses have had times when they have been unable to operate. Business interruption insurance protects your business during times like these. This means that the business’s loss of sales and profits will be covered.
No matter what type of business you own, purchasing the business insurance we’ve listed above is essential. This is because business insurance protects your business financially should an employee, customer, or passer-by experience harm at the hands of your company. Not having the correct insurance could mean your business is liable for damages. As well as this, it could also mean that your business can no longer operate.