Businesses usually face a wide range of risks during their day-to-day operations. That is why insurance coverage is important. By purchasing basic business insurance, business owners can protect their businesses from liabilities that may arise. There are also specialty policies that are designed specifically for certain businesses. Smart Business Insurance offers different types of policies to meet the unique coverage needs of different types of businesses. Whichever type of business you run; it is crucial you search for the most suitable cover for all the liabilities that may arise.

Types of Liabilities

 

i) Property Damage and Loss

There are many possible causes of property damage or property loss. For starters, an inferno can raze down the business premise and destroy inventory, furniture and fittings as well as any other tangible asset you may have in the business premise. Vandalism, a huge storm, flooding and earthquakes can also cause property damage. On the other hand, robbers and burglars can break into the business premise and steal valuables. To protect your business from the risk of financial losses due to property damage or loss, you should consider purchasing commercial property insurance. This will provide you with compensation for all your losses when you file a claim.

 

ii) Injury Lawsuits

When clients, customers or members of the public decide to file a lawsuit against your business, you will have to pay a lawyer to defend you from the claims. Since the case may drag on for months or years, you will spend tens of thousands of dollars on legal fees. if the injury lawsuit is concluded in favor of the plaintiff, you will be forced by the court to compensate the plaintiff for their injuries. This can be incredibly costly. The total cost of the suit can be too much for you to bear, so your business may not be able settle the cost. Fortunately, a public liability insurance policy can pay for the legal defense as well as settle the compensation awarded by the court. This means that in case of a lawsuit, your business will not be adversely affected, whether or not you win the case. There is a long list of businesses that have gone bankrupt because of lawsuits, and you do not want to join the list.

 

iii) Commercial Vehicle and Cargo Insurance

This is a specialty coverage for vehicles used by businesses for commercial purposes. If you have a number of vehicles you use to transport goods or raw materials, you have to purchase commercial vehicle insurance to protect your vehicles as well as the commercial goods they carry. When an accident occurs or the vehicle is vandalized, the policy will protect you from losses. The policy will provide coverage for the damage on the vehicle as well as the damaged or lost cargo.

 

iv) Workers Compensation Insurance

Employers are required to sign up for workers compensation and enroll every eligible worker. Failure to meet this legal requirement can lead to legal and financial sanctions. Workers compensation insurance protects both the employer and worker. Employers are protected because injured workers are prohibited from filing injury lawsuits against their employer. Secondly, injured workers can expect to get guaranteed medical benefits to cover medical bills. They’ll also receive temporary disability payments if they have to stay out of work for a period exceeding 7 days. Work Comp also offers permanent disability benefits for injured workers who are permanently disabled.

By purchasing a policy from a suitable insurance company, you can expect to be sufficiently protected from liabilities. Just make sure the inclusion and exclusion clauses on those policies as well as liability coverage limits are favorable.