Every business requires a basic insurance policy. However, it’s advisable to ensure you are very well protected. You never know what issues may arise, and being well covered for any eventuality will give you great peace of mind. When choosing what insurance coverage to take out, try not to consider cost saving options only. Make sure that you read the small print and check the details. Higher premium insurance policies may be tougher on the pocket, but if a problem with your business arises, you will be very grateful of it. Below are three types of cover to consider for your small business, that will help cover you for most, if not all, eventualities.

General Liability Insurance

General Liability Insurance is the basic insurance all businesses are required to take out. General liability insurance protects your business assets. It covers you if there are any property damages or injuries caused by you or your employees, and pays for any obligations if someone gets hurt on your property. This insurance also covers the cost of any legal fees, and covers any settlement compensation fee you need to pay out if sued.

Property Insurance

If you are renting business premises, then it is unlikely you will need to be concerned about property insurance. However, it is best to check with the owner regarding what insurance they have taken out on the property, and what it covers. Property insurance will protect you against a variety of possible problems such as fire damage, vandalism, smoke damage and theft. You could also consider supplementing the basic policy with loss of earning and business interruption loss, to protect your income if the business is unable to operate due to property damage. If you rent, you could take out renters insurance to supplement the owner’s property insurance. If you own your own building, you will need to arrange property insurance to be adequately covered.

Life Insurance

Taking out a life insurance policy is not a requirement for owning a small business, but it is a worthwhile additional insurance cover to consider. Life insurance will protect your family and loved ones financially upon your death, giving you and your family peace of mind that they will not find themselves in financial difficulty. Upon death, the insurance company will pay a sum of money to the beneficially. Certainly worth considering if you wish to protect your family.

Whatever insurance policy or additional policies you take out, make sure that you read the small print well. Check for any clauses that may, in certain situations, make it difficult for you to make a claim. Check what exactly the insurance policy covers you for and discuss with your broker or insurance company anything that you are unclear or unsure about. Consider asking your broker or insurance company about a business package insurance policy. This kind of policy can incorporate difference insurance coverage, such as Professional Liability Insurance, Business Interruption Insurance, and Income Protection Insurance, making it much more cost-effective. Remember that even with a business package insurance, to check the small print and find out exactly what you are covered for.