Should You Insure Your Business?

Life is uncertain. You’ll never know when it will give you surprises, both good and bad. Whatever it is, you need to be ready for it.

This is among the many reasons why insurance exists. It helps protect not just you and your family but also your possessions in case something happened. The good thing now is that there are several things you can insure – house, car, motorcycle, personal possession, and the list goes on.

Did you know that you can also insure your business?

“Eh maliit lang naman ang negosyo ko. Wala din ako pang-bayad. Bakit ako magpapa-insure kung pwede ko naman idadgdag na lang sa kapital ko.”

That’s a good point. Still, having your own business means you are exposed to certain risks. These risks could negatively impact not just your cash flow but also your business in general. When this happens, you are at the verge of operating at a loss or close your business to save whatever is left. But when you have a business insurance, you feel secured against unprecedented events that could challenge your business.

But before you get one, did you know that there are different types of business insurance? These types cover specific areas in your business, so make sure you pay attention to find out what’s best:

Business Owner’s Policy

This is the most common type of business insurance availed by many businesses. It covers a wide coverage – from damage to property caused by fire or typhoon, business interruption, liabilities, to workers’ compensation among others.

BOP is ideal for small businesses with less than 50 employees.

Property Insurance

You’ll never know when fire, typhoon, or earthquake will happen. When it does happen, your business’ properties like owned space, inventory, and equipment is in danger.

Thankfully, insurance companies offer Property Insurance for business. In case disaster happens, you can reimburse whatever was damaged inside the area, including your inventory.

General Liability Insurance

Are you a start-up business? If yes, then this type of business insurance is ideal for you.

General liability insurance could protect you from various claims like accidents, damage to property, and personal injury. It could also cover medical fees or legal expenses.

Nonetheless, general liability insurance is best paired with another type of business insurance for bigger coverage.

Electronic Equipment Insurance

This is recommended if you are in a business that is heavily dependent on electronics. By electronics, we mean not just computers.

Electronics will break down and go through the normal wear and tear. Unfortunately, they don’t come with a cheap price tag. In case your concern is how to protect your business against loss or damage to the equipment, then EEI is the right coverage for you. This way, you don’t have to worry about temporary stoppage just because something broke down.

Here comes the best pat: home-based businesses may avail of this type of insurance as well.

Vehicle Insurance

Having a company vehicle is both efficient and convenient. Just like any other material things, wear and tear happens. Accidents might occur, too and when your vehicle isn’t working, it could affect your operations, especially when you are heavily reliant to it.

Here comes vehicle insurance. You can have your business car insured for protection against damages or accidents. Just make sure you ask for the coverage and restrictions to make sure that you can claim.

Business Interruption Insurance

Also known as Business Income Insurance, this type of coverage keeps you covered in case of unexpected disasters and evacuation is necessary. It helps you by covering costs of relocation as well as income loss as a result of closure brought out by the disaster.

There are many other business insurance types that are more suitable to your needs. Before you say yes, think hard and think clearly about what you really need and what is more suitable for your business. This way, the money you pay for the insurance premium won’t be put to waste.

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