3 Types of Insurance You Need to Protect Your Business

Since we spend almost as much time in the workplace as we spend at home, we all know the importance of making our office feel as comfortable as possible. We pick the right ergonomic furniture and make sure that we have everything we need to be as productive as possible. Yes, the space we work in is important for our overall efficiency, which in turn, is important for the success of the business. But there are other things that are often overlooked when it comes to prosperity in business. One such thing is protection.

Protecting the business is crucial for the growth and upward progress of your company. This can be done in many ways like hiring an attorney, finding an accountant, and getting insurance. Buying insurance is frequently forgotten, especially by small businesses. But no matter if you’re a small business or a large company, getting the right type of insurance can save you much trouble.

Why Is Cyber Insurance Important?

Most businesses today depend on technology to run properly. If you own a business, you probably use the internet, websites, computer programs, and emails, and you store information about your clients digitally. All of this makes you vulnerable to cyberattacks. A cyberattack is when someone illegally attempts to obtain information from someone else’s computer or harm their computer system. You might think that you’re well protected, but hackers nowadays find more and more ways to do damage. In order to prevent this from happening, or to get back on your feet after a cyberattack, you should find a reliable cyber insurance policy to protect your business. Data breach commonly occurs because of weak passwords, outdated software and hardware, malicious software, insider threats, or the company might have given too many permissions which makes it easier for hackers to gain access. Having cyber insurance can help your business in several ways.

Provides First-Party Cyber Insurance

Providing first-party cyber security insurance means covering your business’s financial loss. This may include:

• Paying experts to recover control over the system and recover the lost data
• Cyber extortion costs which are the costs of ransom demands, hiring cyber experts, and future prevention
• Costs involved in the repair of the hardware and software systems
• Reimbursement of income loss due to the breach
• Costs of notifying customers and other parties that a breach has occurred
• Monitoring services and protection for your customers
• Launching campaigns to restore a company’s reputation

Provides Third-party Cyber Insurance

Buying a cyber insurance policy will help you deal with third-party claims which are your customers, freelancers, and contractors. They may sue you if their network was compromised or their confidential information was exposed because of the breach. Cyber insurance will provide coverage for court costs, attorney fees, and other damages. If you can take responsibility for other people’s problems, it means that you’re a reliable and trustworthy business. So, ensuring that your company has cyber liability insurance makes you look good in the eyes of others and shows that you’re able to spring back from any misfortune.

Why Is Sickness and Accident Insurance Important?

We buy insurance for our personal property and belongings but we don’t concern ourselves much with protecting one important thing – ourselves and our abilities. Having sickness and accident insurance will make sure that you have an income even if you aren’t able to provide for your family for a longer period of time. By protecting yourself, you can protect your business as well.

You might think that nothing serious will happen to you, but life is unpredictable. Car accidents, slipping on ice or other surfaces, hurting your back or falling, etc. It’s so easy to hurt ourselves when we expect it the least. We may fall ill and not be able to recover for months. That being said, sickness and accident insurance policies can cover a wide range of injuries and they can include coverages that suit you and pay monthly. If you happen to have an accident or become ill, the insurance company will pay you up to 70 or even 80% of your income until you can work again.

There are certain things that you might want to consider before choosing the right insurance for you or your family like the waiting period or the type of coverage. The waiting period refers to how much time it takes for the payment to begin. It’s different for every type of insurance or even different companies. Some insurances can offer additional benefits for blindness, accidental death, or paralysis. It can be short-term insurance that covers you if you’re unable to work for a shorter period of time and they are inexpensive. Or it can be long-term insurance that provides coverage if you’re unable to work for years and can last until you retire. These aren’t as affordable as the short-term policies but at least you’ll know that you’ll be covered for as long as you need it.

Why Is Liability Insurance Important?

This type of insurance provides protection if your business is responsible for third-party property damage or personal injury. Liability insurance covers the cost of lawsuits, settlements, and awards. It can cover claims of physical injuries, such as in the event of a customer getting injured on your property. For example, they slipped and fractured a bone. It also covers claims that someone was hurt by false or misleading advertising or if your product causes damage to a customer’s property or if they are harmed by your product in any way.

There are different types of liability insurance and some businesses are required to have a specialised form of liability coverage. There is, for example, Employment Practices Liability Insurance that covers sexual harassment, discrimination, and other employment-related allegations. Bars, restaurants, nightclubs, and others that serve or sell alcohol need alcohol liability insurance. Errors and Omissions Insurance protects against negligent actions, performance errors, or a loss due to counsel and advice. Basically, you should consider all aspects and choose the insurance policy that suits you and your business’s needs the best.