Insurance is a basic requirement for businesses, homeowners, farmers, and other types of entities that are exposed to different types of risks every single day. Insurance helps to protect policyholders from financial liabilities that may arise for one reason or another. When a claim is made by the policyholder, the insurance company processes the claim and makes a payout according to the terms and conditions highlighted in the policy document. Smart Business Insurance can help a business grow without having to worry about lawsuits and other types of losses.
Home Insurance Policies
The ideal homeowner’s insurance policy should protect the structure of the house and its contents from damage that may be caused by an inferno, flood, storm, or burglars among other things. If a fire razes down the building, the policy should pay for repairs and furnishing or pay an equivalent amount for the financial damages. Whatever the case, a home insurance policy will help to ensure the homeowner has a roof over their head and does not incur any financial losses. Please note that some policies do not cover flood damage or storm damage, so it is important for every property owner to look through their policy document before purchasing a policy.
Farm Insurance Policies
Farming can be an incredibly profitable venture if the weather allows. If there is drought, flooding, armyworm invasion or an outbreak of diseases affecting crops or livestock, farmers can experience huge losses that can put them out of business. Some farm insurance policies can offer coverage against reduced incomes due to a variety of reasons. This means that farmers can guarantee their incomes and safeguard their assets by purchasing a suitable farm insurance policy.
There are many types of risks that different types of businesses usually face. However, almost every business faces the risk of lawsuits. Employees, workers, suppliers, and other stakeholders can file lawsuits against the business. Sole trader businesses usually face the greatest risk as all liability falls on the business owner. Owning a business under a company or corporation can help to mitigate the risk exposure to the owners, but a lawsuit can still force the company into bankruptcy or cause significant losses.
Apart from lawsuits, businesses also face the risk of significant damages due to fires, burglary, floods, and other types of disasters. Therefore, a suitable policy should protect businesses from all the risks that business owners face.
Types of Insurance Every Business Should Have
i) Workers Compensation Insurance
This is a basic requirement for most businesses. Depending on your state of residence, workers compensation insurance may be a legal requirement. This policy protects employers from the risk of lawsuits filed by injured workers. It also provides injured workers with guaranteed medical benefits and wage replacement benefits. This is a must have if you are in a high-risk industry.
ii) Public Liability Insurance
There are many things that may lead to business failure, but none is as serious as lawsuits. A disgruntled customer or worker can file an injury lawsuit against you and your business. If they hire a great lawyer, you run the risk of getting an adverse court ruling. You may be required to pay thousands or even millions of dollars as compensation to the plaintiff. In addition to that, you will also be required to pay legal fees. If you have public liability insurance, the insurance company will pay all the legal fees incurred in mounting a potent legal defense and pay the compensation awarded by the court.
iii) Business Property Insurance
It is imperative you insure all the assets of a business against damage and loss. This includes electrical appliances, inventory, furniture, and fittings among other types of valuables. In case of a fire, burglary incident, flooding, storm damage or any other type of disaster, the insurance company will compensate you effectively for your losses. This means you can continue operating your business without any disruptions.
iv) Commercial Vehicle Insurance
If your business has one or more commercial vehicles, you will need to insure them. The ideal insurance policy for these vehicles is a commercial vehicle insurance policy. The policy should cover both the vehicle and its contents. After all, the cargo being carried by the vehicle might be much more valuable than the vehicle itself.
What to Look for in an Insurance Policy
Whether you need home, farm or business insurance, there are several key factors that you will need to take into consideration when searching for the most suitable policy. They include:
It is important you purchase a policy that provides coverage against every possible risk you face. In addition to that, be sure to also check the liability coverage limits that come with a given policy. The wider the extent of liability coverage, the better.
The cost of insurance is a key factor of consideration. You want to purchase a policy that offers the best liability coverage but costs a reasonable amount of money. Be sure to compare premiums together with the liability coverage offered by a policy before you make a decision.
3. Exclusion Clauses
You have to check the exclusion clauses that come with an insurance policy to ensure you know exactly what you are getting yourself into. Some policies have punitive and unreasonable exclusion clauses that may render a policy useless.