Types of business insurance every company should have

Business insurance is an essential aspect due to the financial risk business is exposed to in the event of an accident. You should take a few minutes to understand the types of insurance policies available and the ones you need, which could save you money. Some examples of business insurance you should have include:

Liability insurance

Liability insurance is a policy that protects a business against negligence based on mistakes or the failure to perform. There is no standard liability insurance policy due to the differences in various industries. Each company will have a custom liability policy that addresses its specific needs. If you deal with high-risk businesses such as construction, you should have liability insurance to safeguard against the risk of bankruptcy. Liability insurance pays for legal expenses if a legal suit is within your policy limits. It also covers medical expenses for individuals harmed by your product or business premises.

Property insurance

Whether you own or lease your business premises, property insurance is vital. Property insurance covers your equipment, furniture and inventory in case of destruction by fire, vandalism and theft. Every building is different, and you should ascertain what aspects are covered in the property insurance policy.

Note that natural disasters, such as earthquakes and floods, are not covered by property insurance. If you live in an area that is susceptible to these natural disasters, you should check with your insurance provider for an additional policy.

Workers' compensation

Workers' compensation pays the medical expenses and lost wages for any employees injured when working. This insurance policy pays damages regardless of who caused the accident. Also, the policy pays compensation for employees who suffer fatal injuries on the job. In Australia, workers' compensation is mandatory in every state, regardless of whether you have part-time or casual employees. The premium for the policy is based on the wages you pay your employees and the industry you operate in.

Life insurance

Providing life insurance is the right way of attracting quality employees. For your business to be productive, you need your staff to be motivated. Motivation can include financial incentives that go beyond regular employee benefits. One way of motivating staff is to provide a life insurance policy for individuals who fall in a certain age bracket, for instance, over forty years of age. This policy assures your employees that their family is taken care of if anything happens to them.

Businesses without professional employees have small chances of survival, especially in today's competitive world. To learn more, contact a company like Austwide Insurance Brokers today.