A business is only as good as its customers. After you sell your products, it’s important to make sure that your insurance coverage is the best it can be. There are several factors to consider when it comes to insurance coverage, and usually, the most important part of this process is creating a policy and getting it approved. It’s also important to choose the right policy for your specific situation; one size does not fit all. Here are the types of insurance coverage your business should have before selling products.
Professional Liability Insurance
Professional liability insurance protects you from claims made by clients against your assets in situations where you are acting within the scope of your profession or practice. This includes lawyers, architects, accountants, medical professionals, contractors, interior designers, etc. While professional liability insurance may seem like an obscure concept, it plays a significant role in protecting small businesses from lawsuits.
Commercial General Liability Insurance
General liability insurance protects from property damage, bodily injury, legal defense costs, and other damages resulting from negligence. Whether you operate a restaurant, retail store, construction company, doctor’s office, accountant’s office, etc., general liability insurance protects every type of business. However, because there are so many different industries out there, it can get confusing to choose which coverages apply to your industry.
Workers Compensation Insurance
If your business employs people, workers’ compensation insurance is essential to protect them while working on the jobsite. The most common employees covered under workers’ comp include electricians, plumbers, carpenters, painters, landscapers, etc. If someone gets hurt at your business, but you aren’t paying their salary, it can quickly go through your pocket. That’s why you want to pay extra for a good workers’ comp policy.
Property/Business Interruption Insurance
Property or business interruption insurance helps protect you if you lose profits when things happen outside your control. Examples include fire, flood, earthquake vandalism, vandalism, theft, hail, windstorm, winter storm, etc. These events are often referred to as “E&O,” short for errors & omissions or errors and omission. E&O covers mistakes that occur while preparing invoices, contracts, bills, and proposals. E&O typically protects your ability to continue providing services without missing revenue. If anything happens to the goods or equipment used to provide those services (e.g., computers, vehicles, inventory), you could end up losing money due to having to stop working.
Errors and Omission Insurance
Errors and Omissions insurance covers losses caused by negligence in performing or failing to perform commercial services. Such services might include advising others about real estate investments, legal advice, accounting, engineering, architecture, and other professional services. E&O policies offer a variety of benefits, including:
- Recovery for the full amount of loss suffered – No time limits for recovery
- Protection for any negligent act which occurs during the period of policy
- Additional protection for non-contractual obligations such as warranty claims
In conclusion, insurance coverage should be tailored specifically to fit each business. There is no one size fits all policy that will protect everyone. However, with proper planning, you will find the best insurance coverage at affordable rates. A public liability insurance agency can offer a range of insurance covers from general liability, commercial auto, employee benefits, professional liability, inland marine, life & health, cyber security.