Why do you need business insurance?

What is business insurance?

Business insurance is a type of insurance coverage that protects against risks associated with operating a business. Business insurance covers the assets of a business, the owners of a business, or individuals within the business. Businesses may sometimes choose to purchase additional coverage to protect personal items belonging to workers.

Business insurance is not a one size fits all type of business expense. There are too many variables and situations that could develop, which is why you need to know your business and be aware of your risks to make the best decision for your future

When you own a business, the stakes are higher than any personal risk you might face as an individual. Property and equipment, inventory, market reputation and employee-related risks make business insurance necessary for your peace of mind. 

What are the different types of business insurance?

There are several types of business insurance, to cover different functions of insurance. This is especially true in the landscaping industry. Landscaping business has different types of insurance to secure its business.

Depending on the purpose, industry, the country or city you are in, you could choose one of the following types of business insurance:

  • Business interruption insurance provides funds to run the business while it is closed. It also compensates for the loss of profits caused by factors such as power failures, thefts and vandalism.
  • Business property insurance covers buildings, machinery, inventory and other property against theft, fire and other perils. Some policies also include coverage for money which may be in the till or safe at the time of a robbery or theft.
  • Business liability insurance protects against claims resulting from injuries and property damage caused to someone else during normal operations of your business.
  • Workers’ compensation coverage provides benefits if employees are injured on the job. It covers medical expenses and a portion of lost wages (usually two-thirds). Business automobile insurance provides coverage for automobiles used in the course of your business operations such as delivery vehicles.
  • Extra expense coverage reimburses you for additional expenses incurred when a covered loss forces you to alter your normal business practices.

When you own a business, the stakes are higher than any personal risk you might face as an individual. Property and equipment, inventory, market reputation and employee-related risks make business insurance necessary for your peace of mind. 

  • The employees are bound to be more productive if they are in good health and they’re well being should be taken care of by their employer. Hence, you should always ensure that there is business insurance for your human resource and it covers medical expenses and the hospitalization expenses incurred by your employees due to any injuries caused while working for you You can also choose to provide them with an individual health plan based on their family needs or requirements. 
  • They protect against unexpected losses. These losses could be fire, flood, burglary, accidents etc. Business insurances can also help in covering up your debts if the costs of operation go higher than the income coming in thus making it difficult for you to repay your debts. Hence when your funds flow statement look weak your business insurance can come to your rescue. If you want to learn about funds flow statement you can check out Khatabook.
  • The premium you need to pay for good business insurance is very nominal compared to the benefits that you get.

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