3 Types of Insurance Every Business Should Have

3 Types of Insurance Every Business Should Have

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Your business needs include insurance to protect the business from large losses due to unforeseen events. Without insurance, companies can suffer huge losses that are difficult to recover from. If you want insurance protection for your business, consider the following three options to protect your company.

1. Worker’s Compensation

Accident and sickness insurance is necessary for all employers. If employees are injured or become sick on the job, business owners need insurance to cover any claims filed or lawsuits that arise. Legal fees can easily reach into the millions with worker’s compensation claims. Without insurance, a single claim could bankrupt a company. Every company should consider worker’s compensation for protection.

2. Key Insurance

Key insurance protects the business against loss of an instrumental employee because of death or disability. This employee can adversely affect how a business may operate if his or her contribution ceases due to an unfortunate accident. The company can declare an individual a business loss if the leadership, business contacts, experience or knowledge would significantly affect the company’s profitability. If so, key insurance may be necessary.

3. Compulsory Insurance

Compulsory insurance covers fleets of cars and motor vehicles. The policy covers legal costs associated with using a company car and also personal injuries. The car must be registered to obtain this type of insurance.Compulsory insurance will also cover third party property damage. If damage is caused to the property of another person or the property of others, it covers your legal costs. Third party property damage will not include repairs to the car if the accident is caused by you. Comprehensive insurance is necessary for a company car if you cause an accident. Fire, theft and damage that may occur if the car is stolen is covered by compulsory insurance also.

Other Types of Insurances

Self employed people need personal accident and illness insurance. This insurance will compensate the loss of revenue while your employee recovers. This type of insurance covers normal income if you cannot work due to sickness or accident. If the executive is diagnosed with life threatening illnesses, a lump sum is provided. Dependents will also be provided with a lump sum if you are permanently disabled or death occurs under this portion of the policy.

Every Business Needs Insurance

Businesses need insurance. Insurance protects businesses from going bankrupt due to unforeseen events. Every business should consider investing in these three types of insurance to protect the future. It’s a small investment compared to the huge potential losses. Talk with a professional about the types of business insurance available and what is necessary to keep your business protected.

About the Author

Gary Lennon is an Insurance Specialist from Melbourne, Australia. He says that every business should consider these types of insurance and knows from experience that keyman insurance is often overlooked by many businesses.

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