So you own a small business but you’re not sure if you need insurance? You might think that you’d like to take an additional risk and just skip insurance completely. However, there are some business models that fall into the “absolutely need insurance” category.
Here are a few types of businesses that definitely need business insurance.
1. Businesses That Lease Real Estate
If you own property that you lease to other people or businesses, you should have third party liability insurance. The risks that exist on just about any property at any point in time are too lengthy to list. There are also some risks that are totally unforeseen.
If somebody has a serious accident on one of your properties, even while being leased by another individual or business, then you could be liable. A good liability insurance plan will pay for any damages (above the deductible) that a court awards a plaintiff in the event that a lawsuit is filed.
2. Businesses That Operate Vehicles
Businesses are not exempt from the automobile insurance laws that are applied to individuals. If your business uses vehicles to transport products from place to place, or if you have a sales team that uses company vehicles, then you need vehicle liability insurance. This will not only give you peace of mind, but it will also keep you compliant with the law.
Accidents can occur with the company car – make sure you’re covered
3. Businesses That Sell Products That Can Hurt People
If you’re marketing products that can harm people, then you need insurance. Please note: the products that you market don’t have to be designed to hurt people, such as guns. Even if your products can hurt people, regardless of whether or not they are used appropriately, you could still be liable.
If you sell a product that ends up hurting someone, you might have to pay damages. A good product liability insurance policy will cover you if that happens.
4. Businesses That Employee People Of Questionable Reputations
Some businesses, based on their location or their business model, tend to attract people who are not necessarily “the cream of the crop” when it comes to living a virtuous lifestyle. If you find yourself in that situation with your business, then you should adopt a crime insurance policy.
Yes, crime insurance does exist. As the name implies, it covers you in the event that your own employees steal from you or embezzle money.
5. Business That Have Employees At All
If you have employees at all, then you need workers’ compensation insurance. This is a requirement in almost every state.
Workers’ compensation is insurance that covers your employees in the event of an accident or illness caused by their job responsibilities. It has the added benefit of giving you assurance that your employees will have financial assistance in the event that something terrible happens.
Some business models lend themselves to more risk than others. Those are the businesses that definitely, positively, need some type of business insurance. Also, some forms of insurance are required by law. If your business needs insurance and you don’t have it, why not start shopping for great business insurance today?