So, you’ve finally gotten the courage needed to follow your dreams and become your own boss by venturing into the business realms – kudos! Running a business sure takes a lot of determination, regardless of whether it’s small or big as they both pose their own perks and uncertainties.
This is true in times of pandemics as we’ve been faced with since 2020 with the COVID-19, as well as in times with no health and economic insecurities. Instead of fearing and deciding not to pursue your business dreams, you could still push forward and get the needed security for your most valued possession that brings you your income with the help of suitable insurance coverage.
While every business has its own unique risks, the following are some of the most common and basic insurances a business requires.
Cyber Crime Insurance
Now that we’re part of a digital world, with everything happening in a technological form, most of the businesses are present on the internet with their own websites, as well as accounts on the various social networks and platforms. Having your own data online makes for a wider customer base, that’s for sure, but it also makes for bigger threats from data breaches.
Besides putting your company’s reputation at risk, such vulnerability means you might also fall prey to network security failures which can be costly to cover up and could take a long time to take care of. Time certainly is money, and you can’t afford to waste it, nor can you cover up huge unexpected costs, so why not invest in the suitable cyber crime insurance cover. Even if you find it to be a big initial investment, more than you planned for, it’s going to benefit you in the long term.
This is true especially considering you’re not the only one at risk from a cyber attack – once an attacker comes across your data, your investors, partners, as well as customers can all be exposed to the risk too. Translation: you’d find yourself experiencing third party losses too, which demand you pay third party claims. Even if you aren’t sure on the suitable coverage for you, you can talk it out with an experienced insurance broker to benefit from the investment and best protect your business.
Working with people, providing them with your products and services, poses certain threats on third party property damage or third party personal injury. To be on the safe side from negligence claims that result from mistakes from the services and products you provide, you can get business protection in the form of E&O (errors and omissions) insurance.
It’s as important as the cyber insurance if you plan on fail-proofing your company. The coverage you can get mainly depends on the industry you work in, specifically your business, and may include your employees, partners and directors if you have any, as well as your products if that’s what you work with.
When opening up and running a business, the last thing you want to have in mind is going through a disaster or accident that may be major or minor. However, the truth is they happen, and worst is they are unpredictable and getting the needed protection beforehand is vital so your business would be able to recover fast and keep on running with little interruption.
That’s what the business interruption coverage was created for – to compensate for the loss of income when such events occur, and give you enough financial backing for you to cover up those expenses of wages, loans and rent same as usual. You have to agree, it’s something that takes a huge load of stress off your shoulders.
It doesn’t matter if you own your own store, or are renting, in cases of theft, accidents and disasters, you’d want your property, specifically, your inventory and equipment protected. For instance, if you’re in the baking business and you’ve invested a lot in the appliances such as a dough retarder proofer, and deck ovens, you certainly wouldn’t want to have anything happen to them.
This is exactly what you get with commercial property insurance. It’s designed to help you retain your income while saving you from having to pay any bank costs, as well as rebuilding fees and lawsuits. In times of misfortune, you’d be able to look forward without extra headaches from debts. Just be sure to consult a broker the same way you would when deciding on the best strategy for you with the cyber crime insurance.
Workers’ Compensation Insurance
If you have employees, you need this coverage – there’s no way about it. You’d be surprised to know how even low-risk work environments end up with pricey compensation claims, such as offices with the risks of carpal tunnel syndrome injuries.
Getting this type of insurance is of help in case an employee gets hurt, sick or dies from the job, and it covers bills for medical treatments and hospital stays, disabilities, physical therapy, and lost wages during periods of recovery. All of this in addition to covering funeral costs if they die while working, or because of an illness or injury sustained at the workplace.