What are the different types of business insurance policies?

Written By: Graham McKenzie on January 21, 2010 No Comment

Managing a business is a tense balance between profits and overheads. Obviously the goal is to have the balance weigh to the side of profits, but it’s not that easy. Businesses face growing overheads every month and year. Insurance is an overhead that cannot remain ignored.

There are certain aspects of business insurance that is compulsory by law, while the majority is at the discretion of the owner. Unfortunately, many owners take that as a call to cut back insurance coverage and consequentially reduce costs. But what happens on the day you wish you had all that coverage from the past?

Staying out of trouble is advisable, and insurance stands as the safeguard amidst it all. Never settle for anything and you already know that. Sit down and examine all your insurance policies intently. If there is one you admittedly feel you can disregard, than do it. But do not let your emotions run wild.

A business needs to insure its assets. So you must first and foremost, protect your property, building(s), goods, and manufacturing equipment. These are necessities. But do not stop there; consider that every good company helps their employees cover health and life insurances as well as pensions.

The backbone of a business’s insurance is general liability insurance. Never forget that. General liability insurance protects your company in the event of an accident on or off business premises where it puts an employee in serious danger or harm.

If the employee is injured and decides to sue the company, the insurance provider will have the back of the company. Insurance providers understand accidents happen and they are here to protect both sides. With general liability, the insurance company will provide a settlement between the business and employee.

Product liability insurance is also a great idea. The insurance protects your goods from damages, defects, or bodily harm that occurs to customers after they own the product. They can sue as well, and some people will find ways to sue anybody for a cheap buck or two. So do not risk the chance of getting burned!

The odds of these extreme circumstances happening are rare. You pride yourself on an extremely safe operation and keeping your employees pleased at all times. But all it takes is one accident. Can you shoulder the financial burden?

Insurance becomes more and more complicated the larger your business becomes. Think about it, you have more employees and you have more customers, creating a higher likelihood of disgruntled clients.

Graham McKenzie is the content Syndication Manager at insurance123.co.za South Africa’s leading Commercial Insurance information portal.