Monday, December 8, 2014
Business
insurance
is there to protect your company from lawsuits. To guide any
entrepreneur looking to choose a specific insurance policy, here are
a few of the most common choices explained:
General liability–
Every type
of business, whether office or home-based, needs to have liability
insurance. Having such provides adequate defense from situations
wherein either the owner, his/her employees, or the products/services
being offered cause (or are alleged to have caused) bodily harm or
property damage to any party.
Product liability–
Companies
that manufacture, distribute, wholesale, and retail a product can be
held liable for its safety. This type of policy protects a company
against financial loss as a result of defective products that cause
injury or bodily harm. The amount of insurance a business owner
should purchase heavily depends on what kind of products his/her
company sells or manufactures. For instance, a clothing store would
have far less risks to mitigate as opposed to a pharmaceutical
company.
Worker’s compensation–
One of the
most important policies out there, this typically provides insurance
to employees who get injured on the job. It usually provides wage
replacement and medical benefits to any affected individual, but
there’s a catch: once an employee agrees to be compensated, he/she
gives up the rights to sue the employer for the incident. This policy
type basically acts as a wall to protect a company from various legal
complications, should the worst surface at any given time.
