A good business man is the one who knows how to run his business well and how to manage his risks, small or big risks. There are so many scenarios that could cause bad impact to a business like criminal activities, health and safety breaches, employee negligence, and many more. The impact could cause the business from losing profits to bankruptcy, and during the time of global recession like today the risks seem to be bigger and bigger.
In order to manage those risks, having business insurance for precaution is a must. There are so many types of business insurance that you can have to protect the continuity of your business, You can pick up business insurance plans that suits your needs best. business insurance plans can also be tailored in order to protect employees, customers, or machinery depending on your needs.
Although by the law there’s only one insurance policy that business owners are required which is employer’s liability insurance, or for some professions such as lawyers, accountants and financial advisers which are also bound by law to take out professional indemnity insurance, but business owners must still have to take other business insurance since the one that is mentioned before only protects a single aspect of their business.
It is advisable for business owners to consider which aspects of their business that really need protection before buying business insurance policies.
Types of business insurance are :
Employer’s Liability Insurance (ELI)
This is the type of business insurance that every business owner must have according to the law. Having ELI, you don’t have to pay compensations for employee illness or injury that results from the workplace, as long as you conduct a standard health and safety audit required by the insurer. You can consider it as a health insurance for your employees.
The premium for ELI is vary depending on how many physically risk factors that can occure in your business. low risk businesses such as offices get lower premium than a high risk businesses such as contractors.
Professional Indemnity Insurance (PI)
This type of insurance is obligatory for professionals such as lawyers, accountants or financial advisers. Other professions related to service industry which are not obligated to take a PI are also advised to take this type of insurance. This insurance protects your business financially for any harm, or undesirable effects, that affect a customer as a result of an employee’s actions.
Public Liability Insurance
This insurance protects your business against claims by members of public, due to injury or loss caused by your business.
Business Interruption Insurance
It provides compensation for any loss of income as a result of the business can’t operate normally due to the reasons beyond the business’s control.
Property Insurance
It’s very important to insure your business place, as the damage of the business area can really affects your business. Property insurance gives protection for the repair of the property you use as a business place.
Money Insurance
Gives compensation for the loss of money if your business frequently holds or transports significant amounts of cash or cheques.
Key Person Insurance
Usually the strength of a business lies on the hands of key persons. This insurance can give support to your business in case you are losing important key persons until they can be replaced.
I have wrote about some of the insurance types above in the previous postings, and I shall give review abaout the rest in a short time.
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