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What type of insurance does a business need?


Business owners must understand their business insurance needs to adequately protect them from possible financial ruin in the future. Because change is constant, a comprehensive insurance policy will cover a business while adapting to the constant changes in the economic landscape.

Let’s review a few insurance types that every business needs to not only survive, but to continue to thrive. Now more than ever, it would be wise to apply for business insurance sooner rather than later to avoid costly unforeseen incidents  and possible financial setbacks due to circumstances.

Types of business insurance

  • Commercial Vehicle Insurance
    This type of insurance ensures that your business’ fleet is covered. It not only provides financial peace of mind but allows you as the business owner to focus more on business and less on what will happen if something goes wrong. Commercial vehicle  insurance may also cover the vehicle of an employee that is used for business transportation, should the employee not have their own insurance in place. Commercial vehicle insurance may also financially protects the business should an employee be injured while driving on duty.
  • Liability Insurance
    This type of insurance provides cover not only for the business but for the products and / or services, as well as for employees. Broadform liability insurance provides the necessary financial cover that extends over and above general insurance that may only cover your property and assets.
  • Property Insurance
    Property insurance covers a business property in case of fire, storm damage, and other unforeseen circumstances. This type of insurance can also cover hardware such as computers and tools. Property insurance is vital to have in place, as repairs of this nature can seriously affect the future financial well-being of a business.

As a business owner, it is good to be financially prepared should an employee need medical attention or financial compensation due to an injury sustained at work. Personal Accident insurance allows the business owner to pay for the necessary damages, medical bills, and compensation payments without jeopardising the financial future of the business. Be sure to read through your policy schedule carefully as some lines of work could be excluded from personal accident insurance.

The key to having the proper coverage in place is to thoroughly understand the needs of your business so that your insurer is   able to tailor your insurance package to meet those needs.

It is also best to investigate the factors that may influence business insurance premiums and in turn directly impact your business at a later stage. Let’s have a quick look at what those factors are:

Factors That Influence Business Insurance Premiums

  1. The products or services that you render can influence your monthly premiums. How so? Some items can have a higher risk factor – for example, if your business is selling high-end tech equipment or supercars, then insuring your company’s assets could be considered a higher risk than a business selling refurbished furniture or second-hand appliances.
  2. The location where your business operates could affect your monthly premiums. If the business is situated in an area more prone to flooding, your monthly premium will most likely reflect that risk. Business insurance premiums may also vary depending on whether or not a business is run from a rented or owned space.
  3. The claims history of a business or individual could affect how much the monthly insurance premium should be. A claims history that reflects a high number of claims will mostly likely result in higher premiums to minimise the risk factor.

The best insurance for business owners should cater to the specific needs of either a large corporate business or a small business, and take into consideration the numerous financial risk factors faced by both.

When it comes to business, weighing the risks involved allows you to plan ahead and financially secure your business. A comprehensive business insurance policy tailored to suit your business needs allows you the peace of mind to do business your way.


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