Emergencies and accidents happen by nature. No matter how cautious you may be, undesirable situations are still bound to occur. Accordingly, careful preparation is necessary to make sure that you can overcome these unpredictable instances without draining your financial resources.
Every individual needs insurance. Granted, there are multiple types of insurance plans and packages for personal happenings, such as health insurance for medical emergencies and home insurance for financing repair and maintenance of a residential property. However, unlike the average citizen, businesses are involved in more large-scale transactions and spending, thus it only makes sense that they are in greater need of insurance.
There are plenty of insurance types for different types of businesses. Furthermore, there’s no one-size-fits-all approach because every industry has specific needs and demands. Below, we’ll focus on insurances that are beneficial for companies that manufacture, distribute, and ship products:
Product Liability Insurance
An article reviewed by Julia Kagan, former editor of Consumer Reports and Psychology Today, states that product liability insurance is essential for every manufacturer because the business is at high risk of being named in a lawsuit for damages caused by the goods it produced.
It’s a general rule of thumb to put any vehicle meant for business use under insurance. This is especially important if employees aren’t using their own cars and they can’t rely on their personal insurance to cover damage costs in the event of an accident. You may also want to look into commercial auto insurance, as it covers the expenses caused by auto accidents that you or your workers get involved in while driving for business purposes.
Charterer’s Liability Insurance
Nowadays, the liability environment for the shipping industry is facing an increasing regulation on issues, such as pollution and cargo safety. Furthermore, under a lot of jurisdictions, charterers are accountable for liabilities and indemnities that can be costly. This explains why it’s indispensable for charterers to buy insurance protection. The charterers’ liability insurance is not mandatory, but experts suggest acquiring it as legal responsibilities may be substantial enough to threaten a company’s financial foundation.
Worker’s Compensation Insurance
Your employees are the backbone of your business. Therefore, as the proprietor, you must be responsible for issues concerning their safety and welfare. The worker’s compensation insurance helps with providing benefits to employees who become ill or injured while tending to work-related matters. In the worst case scenario of an employee’s untimely death, benefits can be provided for their family.
Business Income Insurance
Of course, everyone wants their business to succeed. However, in a fiercely competitive industry that is highly affected by economic instability, there may be instances when you have to shut down your business temporarily to recover from a financial crisis. Additionally, it will be damaging if your personal finances take the toll.
By purchasing business income insurance, your lost income can be replaced if a covered incident leads to a short-term halt on your operations. This allows you to have fewer worries and more freedom in making corporate decisions.
The world of business and commerce is ever changing. Thus, it’s good to be financially secure and protected. However, extend caution even to the action of purchasing insurance plans. Always verify if the agent you’re buying insurance from is licensed. In addition, conduct initial research and seek professional help as needed.