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Jeanh
Guest
You just set up a business and want to protect it from the potential risks it entails. How do you know you’re going to choose the right insurance for your business without spending so much money in the process? Owning a business or professional service does not only require your effective management of the usual operations and numbers, you also have to protect it from possible legal charges, damage of business properties, and the well-being of your employees. Uninsured losses can instantly threaten your business that you worked so hard to build.
Knowing the different types of insurance will help you choose the right one or a combination of these to ensure full coverage for your business:
1. Business Owner’s Policy (BOP)
A standard Business Owner’s Policy (BOP) covers damage to property (theft, fire, storms, etc.), liabilities (employee injury during business hours), business interruption, and even workers’ compensation in some cases. BOP is originally designed for small businesses especially those who are into retail, like hardware stores. Today, BOPs cover a broader range of businesses in most major industries and professions. This works best for small businesses with 50 employees or less. Businesses with more than 50 employees may not be eligible for a BOP and will have to purchase another package with the same or even bigger coverage.
2. General Liability Insurance
General Liability insurance can protect you from different kinds of claims like personal injury, damage to property, and other damages or accidents that can happen in your business and its operations. For start-ups, this is the basic insurance that you will need, to be sure that you and your business is covered. This type of business insurance covers medical fees, lawyer’s fees, and legal damages. It is usually paired with another type of insurance to make sure more claims are covered.
3. Professional Liability Insurance
Also called Errors and Omissions Insurance (E&O Insurance) or Professional Indemnity Insurance, this covers your name or business in the event of allegations for negligence, errors, or breach of professional duty in your services, even if you have not made a mistake. This is particularly important for lawyers, real estate agents, contractors, and other professional service businesses. General liability insurance only provides protection in cases of injuries and accidents and therefore will not cover professional service negligence.
4. Property Insurance
This policy protects your business properties such as your office/building (if you own it), all your equipment, and even your inventory. In the case of theft, fire, or damage from natural disasters, this will provide you with financial reimbursement as the owner or renter of a structure and everything that has been damaged in it. If your business is home-based, you can ask your insurer or make your own research to see if your equipment can be covered. You can shop around for property insurance coverage on your local insurer.
5. Electronic Equipment Insurance (EEI)
Most businesses, if not all, are completely dependent on electronic data and electronic equipment like computers, servers, hospital electronic equipment, machines, and telephone systems. Any loss or damage on equipment will definitely affect the day-to-day operations of the business. EEI is usually an all-risk insurance package for all electronic equipment. Business interruption may be covered. This type of insurance also applies for home-based businesses.
6. Workers’ Compensation Insurance
Once your business starts operating, you will need to enroll your very first batch of employees to cover their medical treatment and/or disability. Other employee insurances even cover death benefits. This is in the event that the employee will be injured or have a fatal accident while working for your business. While there are government insurances available such as PhilHealth and Government Service Insurance System (GSIS), it’s best to give them ρrémíùm health and life coverage. The well-being of your employees should be a priority, considering they are the frontliners of your business.
7. Vehicle Insurance
If a company vehicle is needed for your business operations, then you need to have it insured in case of damages or accidents. You can protect vehicles that carry your employee/s, equipment, or products. It’s important to find out if your policy will cover business-related accidents.
Take your line of business into consideration and be proactive by doing as much research as you can so you get to choose the right combination of insurance policies. This will guarantee full coverage and protection for uninterrupted business operations
Knowing the different types of insurance will help you choose the right one or a combination of these to ensure full coverage for your business:
1. Business Owner’s Policy (BOP)
A standard Business Owner’s Policy (BOP) covers damage to property (theft, fire, storms, etc.), liabilities (employee injury during business hours), business interruption, and even workers’ compensation in some cases. BOP is originally designed for small businesses especially those who are into retail, like hardware stores. Today, BOPs cover a broader range of businesses in most major industries and professions. This works best for small businesses with 50 employees or less. Businesses with more than 50 employees may not be eligible for a BOP and will have to purchase another package with the same or even bigger coverage.
2. General Liability Insurance
General Liability insurance can protect you from different kinds of claims like personal injury, damage to property, and other damages or accidents that can happen in your business and its operations. For start-ups, this is the basic insurance that you will need, to be sure that you and your business is covered. This type of business insurance covers medical fees, lawyer’s fees, and legal damages. It is usually paired with another type of insurance to make sure more claims are covered.
3. Professional Liability Insurance
Also called Errors and Omissions Insurance (E&O Insurance) or Professional Indemnity Insurance, this covers your name or business in the event of allegations for negligence, errors, or breach of professional duty in your services, even if you have not made a mistake. This is particularly important for lawyers, real estate agents, contractors, and other professional service businesses. General liability insurance only provides protection in cases of injuries and accidents and therefore will not cover professional service negligence.
4. Property Insurance
This policy protects your business properties such as your office/building (if you own it), all your equipment, and even your inventory. In the case of theft, fire, or damage from natural disasters, this will provide you with financial reimbursement as the owner or renter of a structure and everything that has been damaged in it. If your business is home-based, you can ask your insurer or make your own research to see if your equipment can be covered. You can shop around for property insurance coverage on your local insurer.
5. Electronic Equipment Insurance (EEI)
Most businesses, if not all, are completely dependent on electronic data and electronic equipment like computers, servers, hospital electronic equipment, machines, and telephone systems. Any loss or damage on equipment will definitely affect the day-to-day operations of the business. EEI is usually an all-risk insurance package for all electronic equipment. Business interruption may be covered. This type of insurance also applies for home-based businesses.
6. Workers’ Compensation Insurance
Once your business starts operating, you will need to enroll your very first batch of employees to cover their medical treatment and/or disability. Other employee insurances even cover death benefits. This is in the event that the employee will be injured or have a fatal accident while working for your business. While there are government insurances available such as PhilHealth and Government Service Insurance System (GSIS), it’s best to give them ρrémíùm health and life coverage. The well-being of your employees should be a priority, considering they are the frontliners of your business.
7. Vehicle Insurance
If a company vehicle is needed for your business operations, then you need to have it insured in case of damages or accidents. You can protect vehicles that carry your employee/s, equipment, or products. It’s important to find out if your policy will cover business-related accidents.
Take your line of business into consideration and be proactive by doing as much research as you can so you get to choose the right combination of insurance policies. This will guarantee full coverage and protection for uninterrupted business operations
