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Do You Need Business Insurance Coverage?

Business man rising coinsAs a small business, one of your biggest challenges is money. You cannot afford to spend it on items you think you do not likely need. However, sometimes there is a difference between expectations and reality. Take, for example, business insurance.

Many business people think they do not require one, but not having it may be doing more harm than good. What is important is you have the right insurance coverage.

Workers’ Compensation

Workers’ compensation is a mandatory insurance policy that covers different types of employees, from full-time to casual. Companies that hire contractors also need to ensure the employees have coverage by the same policy.

The premiums, on the other hand, depend on many factors including your industry and the claims history. They may be different among states as well.

Compulsory Third Party Insurance

Whether you are using the vehicle for business or personal use, you need a compulsory third party insurance coverage. It protects you from any claims made by third parties due to injuries they sustained from your vehicle.

Do not confuse this with comprehensive insurance, which allows you to make claims for any damages made on your vehicle.

Goods in Transit Insurance

Many things can happen to your goods while they are in transit. Whether the liability lies on you or the carrier, one thing is for sure: you can lose a lot of money. This insurance policy ensures you do not drain your assets during a loss.

How Much It Will Cost You

It can range from a few hundred dollars to thousands. The cost, however, should be your secondary consideration. While you have no control over the charges of insurance providers, you can do something to reduce your premiums.

For example, you can invest in steel strappings for goods in transit, keeping them in place and decreasing the likelihood of damaged goods.

Rather than thinking about these insurance policies as expenses, consider them as investments. You are bound to lose more if you do not have them.