Does My Business Need Insurance?

There are obvious risks in running any business, but having the proper insurance to cover your operations and liabilities can  help to minimize your company’s  risk.  There are many types of protection for businesses.  The type of business you run and its legal status will determine the type of insurance needed.

If a business has employees outside the immediate family, it is required that the business has Employer’s Liability Insurance.  This type of insurance offers protection against disease and injury incurred during the normal course of duties.  Liability Insurance can be useful if an employee or family member of an employee sues the company for neglect or damages caused by a work-related accident or injury.  It will also usually cover the damages from a lawsuit along with the legal costs. Workers Compensation insurance provides medical and disability coverage for your company employees in the event of a work related illness or injury.

There are other types of insurance that are required for different types of businesses.  Each state has it’s own insurance guidelines and requirements that must be met for different types of businesses as well.  Some of these are Motor Insurance - protection for a business vehicle against damage, theft, and damage or injury to an operator or a third party outside of the company; Public Liability Insurance – coverage in the event that someone outside of the company is injured or property is damaged and the company is at fault; Product Liability – coverage for damage or injury caused by the use or operation of a company’s product.