Setting up a business carries with it a certain amount of risk. At any given moment, unforeseen circumstances or risks might arise; hence, the importance of taking insurance. Forgoing insurance might seem like a good way to save money and some dismiss insurance as paranoia but it is a sureproof way to protect yourself against unforeseen damages and give you peace of mind.
It is advisable to purchase all necessary insurance from a single company. The most common types of insurance are covered by business owner’s policies. When starting out, carry out a risk-management audit to identify potential liabilities and accident costs.
There exists a wide range of insurance types to protect businesses against risks and unforeseen circumstances. Some of them are:
Property Insurance
Property insurance is top priority, whether you own or rent a place. It covers damage to inventory, furniture, equipment and signage from fire, theft or storm. However, it does not cover floods or earthquakes. The latter falls under a different policy and is taken up if the area your property is located in is prone to such dangers.
Workers Compensation Insurance
Workers Compensation Insurance comes under the business insurance policy and covers medical treatment, disability, and death benefits if an employee meets with an accident or loses his/her life while carrying out business duties. Even a bad fall or a medical condition like carpel tunnel syndrome can result in expensive claims which are easier to meet if you have them covered with insurance.
Home-based Businesses
As homeowner’s policies don’t cover businesses like commercial property insurance, it is important to take additional insurance. This will cover equipment and inventory in the case of home-run businesses. This is especially important for entrepreneurs starting out small from home.
Business Interruption Insurance
In the case of an interruption of regular work due to some catastrophe or accident, it is necessary to have the loss covered. This insurance is for businesses that operate from a fixed physical location like a store. Lost income due to unexpected occurrences is compensated by this kind of policy.
Professional Liability Insurance
Negligence claims can arise as a direct result of failure to perform duty or from irreversible mistakes which leads to damage. A business or organisation can cover this type of claim under Professional Liability Insurance or Errors and Omission (E&O) Insurance. Since each industry differs when it comes to the nature of work involved, customised policies address individual areas of concern.
Read more about the 13 types of Insurance a business needs in Singapore at InCorp Global.
