In today’s modern business world, a company has many concerns which need to be addressed in order to guarantee continued successful operations. An effective marketing strategy should be implemented; motivated employees need to be recruited to perform specific tasks and internal sales pipelines should be addressed frequently. Notwithstanding these primary areas, it is essential for a business to possess adequate business insurance coverage in order to mitigate any unforeseen circumstances that may arise. So, let us briefly examine some of the commonly utilised policies and a number of the benefits that they can provide.
Business Liability Insurance
All companies need what is known as business liability insurance. This policy protects the business against any damages incurred by third parties (such as customers) in the event that a product or service cause injury. Such an example could be a bicycle part failing and resulting in a customer to injure an ankle. Liability insurance for small businesses can greatly aid in protecting the company is such an event. The policy can help in covering any extensive legal costs in the event that a negligence case is filed. Furthermore, if a settlement is reached, this policy will also provide financial remuneration to the injured party. This type of coverage is sometimes also known as professional indemnity insurance, and can even extend to online businesses. For example, if a company only has a presence online and similar injury is caused by a product, online business insurance can provide the same level of protection.
Employer’s Liability Insurance
All businesses should also be aware that not only do third parties need to be covered, but employees within the organisation also require protection. Employer’s liability insurance provides restitution for those within a workforce who may be injured or even killed while performing on-the-job tasks. Thus, the employer can be financially covered in the case of an accident or injury while the employees can rest assured known that their needs are being addressed.
Public Liability Insurance
A third area of concern for small businesses is any unintended damage caused by day-to-day activities to a third party, not necessarily referring to a client. For example, if the employee of a window washing company spilled a bit of water on the floor and a bystander slipped and fell, then the company could be held liable. Similarly, if a painting company mistakenly spilled lacquer on a high-end vehicle; financial damages may very well prove to be the end result. Therefore, publicly operating companies need to consider this type of indemnity insurance essential for responsible operations.
Obtaining a Reasonable Insurance Quote
Thankfully, there are a number of avenues to choose from when obtaining an insurance quote for the aforementioned policies. The first step is for a business to determine which policy will provide the most relevant coverage. While business liability insurance is compulsory, employee liability insurance and public indemnity insurance should also prove worthwhile.
After determining the extent of policy coverage, it is obviously important to obtain a small business insurance quote. Cheap business insurance quotes may often be encountered, but it proves advantageous to shop around at various providers to compare and contrast different options. For example, cheap public liability insurance may be a financially attractive offer, but will it be able to provide substantial restitution in the event of a traumatic injury to a third party? If we consider an employer’s liability insurance quote, do their monthly premiums reflect the level of protection employees will be given?
So, we can now see that a small business needs to carefully balance these different types of insurance policies based off of their specific requirements. Whether we are referring to employer’s and public liability insurance or standard business indemnity insurance, these policies can help protect a company, any employees and additional third parties should any unforeseen and detrimental circumstances arise.