Why Your Business Should Have Auto Insurance
Owning a business you will quickly realize how much more there is to do besides satisfying your customers. You have to do things such as providing management, handle the budget cost, control marketing campaigns, etc. With all of these tasks, you will also have to protect your company from anything that could damage it. Here are some things that can severely damage a company: lawsuits, thief, robbery, water or fire damage, and etc.
Being a business owner, you will want to do your best to prevent these damaging things from destroying your business. One way to prevents your business from going under is protecting with insurance. There are many different types of business insurances and this article is going to go over several different options. Many business owners try to rush over getting insurance policies and end up getting policies they don't even need. This article will help you determine which policies are right for your business model.
Why a Business Needs Auto Insurance
If your company owns a fleet of cars or trucks, you will want to make sure you have a solid auto insurance policy. An auto insurance policy protects your business in cases where an employee strikes another driver and destroys their property. It will also cover the medical expense of both drivers in this incident.
Another reason why you need business auto insurance is because most insurance companies when I cover your company car, with your own personal auto insurance. The reason behind this, it is due to company cars traveling more often than personal vehicles, which means that there is a higher risk of an accident occurring.
The premium of your auto insurance plan will vary depending on the number of people on the plan. The more people listed under the plan, the higher the premium will be. The premium will also be higher if anyone you added to the insurance plan has been in any accidents. So it is best to find employees with a clean driving record if your primary business includes driving.
Other Types of Business Insurance
This next section will go over other types of business insurances you can buy to protect your business. Some of them are even required by state law, so be sure to check them out. Here is a list of other insurance plans your business may need:
Commercial Property Insurance
This type of insurance helps protect your business in incidents that cause damage to your business's building, inventory, equipment, or any other assets that may be inside of the building at the time. The insurer will cover most of the losses depending on your policy. This type of coverage is very helpful, so you can quickly get back on your feet after a disaster.
The premium for this type of insurance will vary, depending on whether or not you want the insurer to pay cash or replace the lost items. Usually, the premium is higher if you want them to pay for the lost items. Most financial investors will require a business to have this type of insurance.
Commercial Casualty Insurance
Casualty insurance will protect your business against lawsuits due to property damage, injury, and negligence. This is another insurance policy, investors require before lending money to a business. They know accident happen and without this type of insurance, your business can fall quickly.
For example, if a customer slips on a wet floor they can sue your business. This insurance will protect you in that case by providing the necessary medical, legal, and settlement bills to cover the incident. If you don't have this type of insurance, you would have to pay those bills out of pocket, which could cost you thousands of dollars.
You will most likely have to pay for worker's compensation if you live in the United States. This insurance covers job-related injuries. If one of your employees gets injured on the job, this insurance will help cover the cost of lost wages and medical bills. The premium will vary depending on how many employees you have on staff and how many hours they work. If you own a rather large company, your premium for the insurance will usually cost you a lot. It is also good to have the injured employee take a drug test after an injury to determine if that was a factor. Most states don't require you to file a claim if drugs are in your employee's system.
Every business should protect their business with the aid of business insurance. It is peace of mind, and you won't have to worry about your business going under if a something bad happens one day. Be sure to go over the insurance policies above to find the right coverage for your business.
There is one more type of insurance called Business Interruption Insurance, read next in detail.