Business and risks go hand in hand. You are exposed to numerous types of risks as soon as you begin to practically implement your business idea. With the swiftly and drastically changing dynamics, the scale and impact of even small risks have grown potentially. One lawsuit or a small mishap can crash your venture before it can get off the ground. This invests in business insurance a must. Many businesses shut before they can even register their presence due to a lack of backup to address any unforeseen financial crisis. For the delight of upcoming entrepreneurs and established business names, several business insurance plans are available to safeguard your venture against different kinds of potential threats. These include business insurance that covers personal accident, business insurance for cyber threats, etc. The wide range and flexible plans let you choose the most suitable plan that would shield your business at minimum expenses. Here are some common types of business insurance plans which are popularly sought in the present time.
- Professional liability
Professional liability insurance would guard your business against the negligent claims. It is also known as the errors and omissions (E&O) insurance and address any harm caused by the non-performance of your products or mistakes in your services and practices. As every industry has its own vulnerabilities and concerns, the professional liability insurance plans are often customized to address the specific needs of your business.
The basic you would need for a business is a space to run it. This property of yours is under threat by several environmental and human factors like fire, storm, theft, vandalization due to revolts, etc. These threats can affect the property, inventory, equipment and furniture, and signage. Having property insurance for your business premise can prevent the losses you would incur due to such sudden catastrophic events.
- Workers’ compensation
It does not take much for an injury to happen at a workplace, a simple slip and fall can cause potential injury to any employee. For that reason, it is advisable to invest in the workers’ compensation insurance plans as soon as you hire your first employee. Such policies cover medical expenses for accidental injuries, disabilities, and even death of an employee at work.
- Third-party liability
No matter how much effort you put in to ensure that you market a product that is safe to use, mishaps can happen in exceptional cases. Even one such case is enough to push your business at the backfoot. Third-party liability insurance, also known as the product liability insurance, covers any complaint or lawsuit that claims harm caused to the customers/third-party, due to a product malfunction. You can get a customized plan to suit your specific product type.
- Data breach and cyber liability
No business in the present era operates only on papers and brick-and-mortar concept. You need some kind of online presence or at least would store the data of your clients and employees on a server. This technological advancement has exposed businesses to various threats. A data breach or cyber liability insurance provides coverage against data theft, hacking, or any other kind of attack on your digital presence or digitally stored data.