All businesses come with risks. That’s why business owners have to be strong in the face of adversities because they never know what could come their way. But being a business owner is not all about having the strength to face challenges; it’s also about being resourceful and knowing what measures to take to protect themselves from uncertainties.
If you’re not sure about how to protect your business from financial ruin, you can work with an established commercial insurance agency to learn about the best policies. Since professional agencies already have experience dealing with other small businesses, you can trust them to give you the correct advice.
But it won’t hurt to come prepared by doing your research. There are different kinds of insurance policies for various reasons. Knowing the right ones to get can help you protect your business better. So, here are four of the most common policies for small businesses and how you can benefit from them:
General Liability Policy
If a customer files a claim against your business regarding misleading advertisements, personal injuries, or copyright infringement, it can be considered a financial uncertainty. That’s because you would have to spend on legal fees to hire an attorney that could represent your small business in the lawsuit.
This sudden expense is not something that you could prepare for in advance unless you have a general liability policy that can cover the costs of handling a lawsuit. If your business has general liability insurance, it can pay for any medical expenses, repairs, replacements, and legal costs that you will have while sorting out a claim.
Of course, this policy is not a requirement for small businesses to have general liability insurance, but it can be a good way to anticipate any financial problems in the future. This way, you won’t have to take out a loan or compromise your business operations in case you need a huge sum of money for a lawsuit.
Workers’ Compensation Policy
As a small business owner, you must provide your employees with a safe and hazard-free workplace environment. However, no matter how many precautionary measures you take and implement, it’s realistically impossible to stop all disasters or accidents from occurring.
But those workplace accidents can take a toll on your financial state, especially if you don’t have funds allocated for emergencies. That’s why you need a workers’ compensation policy because it can cover the costs of any medical expenses for your employees and supply their missed wages during their recovery.
The policy can also provide compensation for fatal injuries, including the death benefits and funeral costs for the bereaved family. And lastly, the workers’ compensation policy can protect you from any lawsuits filed by your employees regarding workplace injuries because of negligence.
Cyber Liability Policy
No individual, business, or organization is safe from being targeted by hackers in the digital age. As a business, your data is one of your most important assets because losing even a day’s worth of information can set you back. That’s why you have to protect your business from cyber-attacks.
Fortunately, all you’ll need is a cyber liability policy to protect yourself from property losses caused by cyber-attacks, data breaches, viruses, malware, and hacks. This is even more important if you rely on digital processors and software to conduct your daily operations because it will make you more vulnerable to attacks.
So, to keep your business and sensitive data safe from harm, not only do you need a comprehensive cybersecurity plan in place, but you’ll also need the cyber liability policy. This way, your business won’t be too affected by the attack, especially considering that more than half of all small businesses that experienced a cyber-attack closed down within six months.
Business Owner’s Policy
If your small business is low-risk and operates at a commercial establishment, you can benefit from having a business owner’s policy. This type of coverage plan can protect your business from any financial losses in the event of intentional or accidental damage to your property.
For instance, if your shop has been involved in a fire or if you’ve been targeted for burglary and vandalism, the business owner’s policy can cover most of the costs so that you can bounce back from the incident. But you have to prove that your business is low-risk first before becoming eligible for this coverage plan.
The main advantage of this type of insurance policy is that it combines two coverage plans in one — the general liability policy and the commercial property insurance. This way, you won’t have to pay for two separate premiums because you can reap all their benefits from the business owner’s policy alone.
You can be headstrong and confident while still taking precautionary measures to protect your business from financial uncertainties. That’s just called being smart, which is what you need to be if you want your business to outlast all your competitors. So, explore your options and find the best policies for your small business.