Coronavirus Pandemic and Insurances for Small Businesses
With the outbreak of coronavirus pandemic, every business owner is wondering if they are covered to face the unforeseen circumstances. The fact is that the day your business opens its doors, it becomes prone to certain risks. A lawsuit by a customer or a business partner is enough to wipe out a small business.
However, no business had anticipated that a pandemic would be the biggest challenge in 2020. Since no one was ready for COVID-19 pandemic, there are no specific insurance plans for small business, or even for large corporations. But, you must know all the insurances for small businesses available in the market.
5 Must-Have Insurances for small businesses
Fortunately, there is a wide range of guarantees for small businesses to protect your investments. Here are the five most important ones that your business must-have.
Errors and Omissions Insurance (E&O)
It is also known as professional liability insurance that covers your business against negligence claims. For example, if a customer or a third party suffers due to your business’ mistake or failure to perform, they may file a negligence claim against you. However, this insurance varies from industry to industry, and there is no one policy fits all formula. Each business has its own concerns and practices, so this insurance policy is customizable as needed.
It is a must, COVID-19 pandemic or not. Property insurance covers your business against damages to inventory, furniture, equipment, and your building in case of fire, theft, or storm. How will it help in these circumstances? Well, we often get the news of mass hysteria where people start breaking into businesses and shops. If such an incident occurs at your premises, it will count as vandalism or theft. However, property insurance does not cover earthquakes and floods. If you live in an area prone to such events, then discuss this with your insurance provider and get a policy that covers you against natural disasters.
Employees’ Compensation Insurance
The moment you hire your first employee, employees’ or workers’ compensation insurance becomes a must to safeguard the employees and the business. This insurance covers disability, medical treatments, and death benefits if an employee gets injured or dies due to his nature of work at your business. No matter if an employee’s work is low-risk, even a small slip or trip may cause a medical injury followed by pricey claims.
Insurance for Home-Based Businesses
If you are an entrepreneur operating a small business from home, you may still be eligible to get insurance for small businesses. Unfortunately, your home insurance will not cover any item, equipment, and inventory used for commercial purposes. Therefore, ask your insurer to extend their protection plan to cover your commercial items or look for additional insurance that does.
Product Liability Insurance
It is a must-have insurance cover that protects your business against any legal claims due to harm caused by your product. As a business owner, you may take all precautions to make your product safe for use. However, if you ever find yourself in the middle of a lawsuit due to damages caused by your product, then product liability insurance can save the day for you.
Do Not Delay
As the COVID-19 situation continues, it is high time to protect your business. If you are a new business in town, then do not delay getting these insurances for small businesses. If you are an established small business and lacking any of the above, then get yourself covered as soon as you can. There is fierce competition in the market when it comes to insurances for businesses. Therefore, do your research, compare the prices, and bag insurance that suits your needs and budget.