If you own a business, it is important to know how you can cover yourself and your company with various types of business insurance.
Since every business is different, deciding on the right type of business insurance can get more confusing than mittens on kittens.When you buy car insurance, there is pretty much a set standard for what you can expect: benefits, excess, maintenance. Unfortunately, providing coverage for your business is not exactly the same ball game.
Here Are The Eight Types Of Business Insurance
1.Business Owner's Policy (BOP)
Come on, you have got to have seen that coming. Business Owner's Policy, or otherwise known as Business Owner's Insurance, is a comprehensive insurance product that includes business interruption insurance. This protects your earnings should the business be unable to operate. This is most commonly covered by SASRIA who provide cover for any damage to property caused by strikes, political riots, or terrorism.
2. Property Insurance
This type of business insurance will cover all office equipment. This includes computers, inventory, tools, and other equipment from fire, vandalism, theft, smoke damage, etc.
3. Worker's Compensation
Business owners know their worst nightmare would be for a worker to injure themselves at work and then sue the company for their total net worth. Worker's Compensation protects business owners by providing wage replacement, medical benefits, and, depending on the insurance provider, legal benefits. This comes into effect should employees be sued or involved in any litigation while at work.According to the Labour Department of South Africa, should an employee (casual or full-time workers) be injured, disabled, become ill or get killed, they have a right to compensation. This excludes certain lines of work:
Workers who are totally or partially disabled for less than 3 days;
Anyone receiving military training;
Members of –
The South African National Defence Force, or
The South African Police Service;
Any worker guilty of wilfull misconduct, unless they are seriously disabled or killed;
Anyone employed outside the RSA for 12 or more continuous months; and
Workers working mainly outside the RSA and only temporarily employed in the RSA.
4. General Liability Insurance
This form of insurance is very specific as it provides third party insurance for you, your employees, and your products and/or services should someone allege they received injuries or damage to their property as a result of any of the aforementioned parties.
5. Data Breach Insurance
This type of insurance includes all data that the business deals with in terms of private information shared about employees, clients, or third parties.Since the business will be responsible for protecting this information, should a data breach occur, Data Breach insurance will protect you as the owner against any potential loss.
6. Directors And Officers Insurance
This would affect Directors in large corporations. They may need cover should they make a decision, on behalf of a company, that resulted in a decrease in profitability or negatively affected operations.This type of insurance covers the costs or damages for a director or officer should a lawsuit be issued against them.
7. Commercial Auto Insurance
If your business has a fleet of vehicles, then you should definitely have Commercial Auto Insurance. This product will cover all business vehicles. If your employees use their own cars, you can opt for auto liability insurance if employees do not have adequate, or any, insurance cover. This protects the business owner in a situation where an employee becomes injured while driving.
8. Professional Liability Insurance / Errors And Omissions Insurance
Professionals who work in very high-risk professions, such as lawyers, accountants, or consultants, may require this business insurance. This provides cover should a client wish to press charges because they are dissatisfied with an outcome.Notaries, real estate agents, and insurance agents will also benefit from this type of business insurance.