Why is insurance important for business? Well, first of all, there are several types of insurance that businesses must consider since the needs of each business are unique. Auto, medical, product liability, and accident insurance are just four of them. Those who do the research, and make selections on behalf of a business, review many options before making the final decision.
People who make the decisions for a business, review insurance policy options and work to determine the proper amount. Businesses have to consider the expense of insurance together with its value and determine what level of coverage to carry, they want to find just the right balance, not too much and not too little.
Everyone Needs Auto insurance
Auto insurance is important for businesses that own any type of vehicle. It doesn’t make any difference when it comes to purchasing auto insurance for companies that own one auto that a chief executive drives, or a fleet of vehicles. The type of business and the size of the fleet should determine the type of auto coverage a business requires.
Some businesses spend a large part of their budget on a fleet of vehicles. The food and beverage distribution industry provide the best example, since the company will have a fleet of vehicles, ranging from large industrial vehicles to regular autos used by sales executives. The coverage needed for a business in this industry can be a considerable part of the expenses budget.
Medical Coverage Attracts Quality Employees
Medical coverage is a great way for businesses to recruit the best people. Having good medical coverage available to employees attracts people to a company because people understand that when businesses offer good medical coverage, they typically provide other excellent benefits as well.
Benefits are often considered by employees even before salary. Attracting quality employees with a good benefits package, that includes insurance, is just one way large corporations attract the brightest and best employees.
Product Liability Is Essential for Business
Product liability insurance is essential for most businesses, big or small. A business that sells chocolate door to door, for example, requires product liability to protect them in cases of claims against the product (that can range from a claim that the product was delivered late, damaged, or uneatable), because there is always a potential for product liability claims. It’s vital that a business does not operate without the proper coverage.
Accident Insurance Protects Companies and Investors
Accident insurance is carried by businesses to protect the interest of investors. One example of how accident insurance protects businesses from claims is the traditional slip and fall claim. Should someone be injured inside a business, even if it’s due to something natural, a business is liable for the injury.
Property Insurance Protects Commercial Businesses
Commercial properties require a specific type of policy that covers all the activities that happen on a property. The insurance protects a business for things like fire, theft, vandalism, and in some cases even natural disasters. However, natural disasters require a specific rider because most insurance companies exclude them.
Lost Income Happen with E-Commerce Businesses
One type of additional coverage you can add as a rider is lost income. A policy that covers lost income is usually recommended for e-commerce businesses.
E-commerce businesses can lose large amounts of income should they incur a power outage, which is just one example of issues that this type of businesses face. Lost income reimburses a business for everything from taxes to rent.
Crime Is Everywhere
Commercial properties owned by businesses have the option to carry crime insurance. A policy with a crime insurance rider is great for companies that own rental properties because a crime insurance policy protects a business from damages incurred by renters. For example, if rents damage repairs are made and those damages are deemed criminal rather than natural, your business and investment will be protected.
To learn more about the importance of insurance to business, and how to protect yourself and your company, reach out to us at WellAway, today!