Insurance policies business owners need to protect their operations
There are several types of insurance business owners need to prevent liability and ensure their operations remain successful.
Upon starting a new business, owners often wonder about insurance, if they need it and if so, which kinds are necessary and which are not. Although every company, both large and small, in Oregon has different insurance needs, there are a few key types of business insurance most operations need to protect their investments and prevent liability.
This type of insurance is designed to protect businesses and their employees from any damages incurred as a result of medical expenses, libel, slander, property damage, bodily injury or the cost of defending their interests in a lawsuit. Generally speaking, general liability insurance is sold as the primary form of insurance businesses need, and different add-ons can be included depending on the business’ needs and level of risk. For example, businesses that have concerns about non-paying clients can have accounts receivable protection included in their policy.
Professional liability insurance, which is commonly referred to as errors and omissions insurance, protects businesses against malpractice, errors and any type of negligence that may occur while providing a service to clients. In the majority of cases, businesses that provide tax or financial services, in addition to medical professionals, are most likely to need this insurance.
Businesses need property insurance regardless of whether the space they use to run their operations out of is owned or leased. This type of insurance covers signage, inventory, equipment and furniture in the event of theft, fire or a storm. Business owners need to remember that large-scale destructive events, like earthquakes and floods, do not cover property under one of these policies. Those who run their business in an area that is prone to natural disasters should check with their insurer for additional options.
Businesses that hire their first employee need to acquire a workers’ compensation policy as soon as possible. This type of insurance covers death benefits, lost wages, medical care and other expenses in the event an employee is hurt or dies while performing his or her work-related duties. Even if the work the employees do is not necessarily considered dangerous, business owners need this insurance to protect themselves and their operations.
Contact an attorney
In addition to ensuring all their insurance needs are met, business owners in Oregon also need to protect their business with proper legal documentation. Those just starting a new business should contact an attorney in their area for legal advice about ensuring their business’ success on a long-term basis.