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Business Insurance Policies to Think About

Business owners are always busy thinking about the future of their business, settling pending bills, attracting more customers, retaining the best employees, getting affordable financing and many other things. For the average business owner, running the business can seem like carrying the whole world on their shoulders. However, this does not have to be the case. By hiring competent professionals, business owners can have an easier time running the businesses. For instance, they should consider hiring competent accountants to take care of all their legal needs, certified public accountants to handle all their accounting needs and business consultants to advise them on important issues. It is also crucial for business owners to get advice from a broker like Smart Business Insurance to protect their business from any and all liabilities that may arise. 

The Importance of Business Insurance

The main reason why you should insure your business is because the future is uncertain. A simple injury lawsuit can have financially crippling consequences that may force you to close shop. There are also other types of liabilities that may arise in the course of doing business. If you are properly covered against these risks, the business will not suffer in any way. The following are the 5 most important business insurance policies to think about.

1. Public Liability Insurance

This is one of the most important policies for businesses. We live in a society that may seem unjust because lawsuits are always filed by individuals even without merit. Whether a lawsuit is merited or not, public liability insurance helps to ensure that you will not suffer any financial liability as a result of the suit. After all, legal fees incurred in defending the business against the lawsuit will be paid for by the insurer. If the court awards a huge sum of cash as compensation for damages, the insurance company will also pay the compensation according to the terms and conditions of your policy. Most public liability insurance policies cover both property damage and bodily injury and can help prevent you from closing shop due to financially crippling lawsuits. 

2. Workers Compensation Insurance

Workers are usually exposed to some degree of risk regardless of the industry they are in. While some industries are riskier than others, such as construction, oil and gas, every business needs workers compensation insurance. The scheme protects employers from lawsuits. Workers also derive many benefits, including medical benefits and income replacement benefits. This means that injured workers can get quality medical attention after getting injured at the workplace. The policy will also pay temporary disability benefits to ensure that injured workers continue to live the quality of life they are accustomed to. 

3. Commercial Vehicle Insurance

If you own a single or multiple commercial vehicles, you need to insure these vehicles as well as the cargo they carry. In case of an accident, theft or vandalism, the cost of the property damage or loss will be paid for by the insurer. As a result, you can continue running your business uninhibitedly. 

4. Commercial Property Insurance

A valuation of your business premise can tell you just how valuable your business premise is. The inventory, stationery, furniture and fitting, computers, plant and machinery, points of sale machines and other valuables that may be in your business premise should all be insured. In case of fire damage, storm damage, vandalism, or burglary incident, you will be compensated for your losses, which means your business will not be adversely affected by these incidents. 

5. Business Income Insurance

The income generated by your business may be on an upward trend. By minimizing expenses and cost of goods, you can increase your profit margin. However, incidents like fire damage and storm damage may leave your business suffering. After all, you may have to wait several days or weeks for the property insurer to pay your claim, and this will lead to huge income losses. If you have business income insurance, however, you will be compensated sufficiently for your lost income. 

Choosing a Suitable Policy

There are many insurance companies with different types of business insurance policies, but they are not all equal. You will have to analyze their policies to ensure you choose the right policy for your business coverage needs. In this regard, the following are key factors of consideration when comparing policies.

1. Coverage Limit

Every insurance policy has coverage limits. After all, it would be unreasonable to cover infinite liabilities when damages can be quantified and have limits. If you want to cover a commercial vehicle worth 80,000 dollars, the maximum coverage limit should be 80,000 dollars. Be sure to check what a policy covers as well as the extent of the coverage before committing yourself. 

2. Premiums

The premiums charged by an insurer for the type of policy you want to purchase must be compared. Different insurance companies are going to charge different premiums, so be sure to exercise patience when comparing premiums. Ideally, premiums should be compared hand in hand with the coverage limits to ensure you get value for money. 

3. Exclusion Clauses

You will need to do some research on the policy documents to identify any exclusion clauses. These clauses can make a policy completely useless, so you need to be careful.

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