There are many dangers facing a company in the marketplace. There are always risks when you do business and if you get unlucky, you might end up getting hit by them. The results can be ugly, with a single lawsuit or accident completely wiping out a company’s assets if they are not protected. That is why you need insurance coverage.
Here are some types of insurance that you might sign up for:
Captive Insurance
You might need an 831(b) lawyer to get captive insurance but it is often worth it. An obscure type of insurance, it allows people to create their own insurance coverage. Instead of a third-party company insuring your company, you actually own the insurance company that insures you. You pay premiums to it and it acts like any other insurance firm. You can even deduct the premiums from your taxes.
The main difference is that when you don’t need it anymore, the insuring company can be liquidated so that you can get your premiums back. You might actually earn more money since the premiums would have been invested like a normal insurance company. It does have its own risks but it is a very attractive choice.
Liability Insurance
Whether you sell a service or a product, liability insurance is one of the most essential types of coverage for a business. If something happens because of your service or product, you may face a lawsuit. This insurance ensures that you have a way to pay for the damages without dipping into your company’s funds. Note that there are different types of liability insurance, so choose the right one for your business.
Property Insurance
A company’s assets need to be protected. This is where property insurance comes in. If your office building or company property such as computers and office equipment are damaged by fire, vandalism, or others, then you can replace them using the money from this insurance. It will help you bounce back if ever a catastrophe happens to your business.
Car Insurance
Most businesses have a car or at least a van that helps transport their materials or employees. That means they can get involved in accidents. If they do, you will need money for repairs. Additionally, there are car insurance packages that cover multiple vehicles of a company, so they can be very cost-effective.
Worker’s Compensation Insurance
Your workers are part of your company. You must protect them and help them if they get injured while working for you. This is where the worker’s compensation insurance comes in. It also protects you from being sued by your employees. They have every right to do that if their injuries are due to the work conditions in your company.
Insurance is the protection that your company needs against various risks. Whether it is against accidents or lawsuits, insurance gives a safety net that will allow your business to survive something that could have wiped it out. The money you pay for the premiums is a great investment, so you should sign up with as many as possible.
