Types of Insurance A Business Should Have

Insurance is a basic necessity that everyone one and business owners must have.

There have been numerous myths and assumptions about insurance as such many people often feel irritated when the subject comes up for discussions especially in Africa.

One would ask what at all is insurance? In simple terms, an insurance can be anything providing protection against a possible eventuality.

So from the above, we can say that if you build a fence around your house, it’s a insurance.

If you buy glass screen protectors and armor covers for your phones, that’s another way of insuring your device in the event of a fall, the phone will be protected.

That’s all an insurance is. But the problem most people have is why do they need it for their businesses?

Now think of any possible eventuality where you loose all or part of your business when you have no insurance.

Do you loose it complete or you would rather protect the business so that in scenarios where the unfortunate plays out, your insurance invested in will be your ace card to pull.

As a small business owner, below are some basic yet imperative insurance that you must have.

Life

Life insurance is meant to protects your loved ones from financial loss in the event that you die .

When you take a life insurance, the insurance company, or the insurer, pays an agreed sum of money to a beneficiary you have chosen  upon your death.

For that arrangement, you pay a premium usually in the form of periodic payments (monthly payments) in exchange for the payment of the benefits to the beneficiary.

Having life insurance allows you to know that your loved ones will not be burdened financially upon your death.

Personal Automobile

Automobile insurance covers all types of road vehicles. Some of these vehicles can be your personal ones or that of the business you run.

An owner of a motor vehicle is obliged to take a third party auto insurance.

Third party protects you from a liability that might rise from a collision.

Normally Automobile has a dual function: it protects one against both physical damage and bodily injury that may result from a crash or accident.

Commercial Auto

Commercial auto insurance protects business vehicles. You can use this type of insurance to protect vehicles that carry your products, raw materials, equipment or employees.

Insuring your trucks, SUVs, vans and cars protects your business against loss and liability from damage and collisions.

Property

You take this  insurance to cover your business building or personal property, including office equipment, computers, inventory or tools.

Property insurance covers your property so that the insurer pays to restore your property in the event of a fire, burglary, theft, vandalism, etc.

Worker’s Compensation

This helps an employer cover worker’s compensation to employees who get injured on the job.

Worker’s Compensation insurance provides wage replacement and medical benefits to those who are injured while working.

In exchange for these benefits, the employee gives up his rights to sue his employer for the incident.

As a business owner, it is very important to have worker’s compensation insurance because it protects yourself and your company from legal complications.

Health

This type covers the cost of an insured individual’s medical and or surgical expenses.

The insured makes periodic premium payments to the insurer in order to benefit from the insurance cover in the event of a medical or surgical expense. Depending on the type of health insurance coverage, either the insured pays costs out of pocket, and is reimbursed or an employer makes payments on behalf of the insured directly to the provider.

Taking insurance cover for your business and yourself protects and others and helps you to overcome a loss. It is a very efficient way to manage and transfer your liability risks