Small or big, all businesses are exposed to risk on a daily basis. The insurance you require depends much on the nature of the business you are operating. The type of insurances available to your business comes in many different forms, but they all primarily fall into 3 main categories: Assets and Revenue, Liability, and Employees.

What are Assets and Revenue Insurances?

This type of insurance covers your assets and your source of revenue. At the very least you should purchase the compulsory insurances that are applicable to your business to protect your business assets and from loss of business revenues.

You should also consider protecting your business property from events like fire, earthquakes, theft, and malicious damage, which typically covers the premises (if you own it), office equipment, inventory, computers and tools of trade. In the event your business experiences any of the pre-mentioned catastrophes or machinery breakdown, you should also consider insurance that will protect you from loss of income should the business is unable to operate temporarily.

Loss of income could result from non-payment of your invoices, loss of money from theft or while in transit to the business premises, and loss of profit due to calamity that halts or ceases trading altogether.

What is Liability Insurance?

General liability insurance is strongly recommended for all businesses.  The first is public liability which covers any bodily harm or property damage caused to third parties by you, your employees.

The second is called products liability insurance which covers against injury or damage caused by the failure of your product – including those you sell, supply and distribute. This includes products that you’ve repaired, serviced or modified.

The financial loss caused to a client by the breach of your professional duty such as the error or omission of your advice can also be covered by insurance. This is called professional indemnity. In event of legal action taken against directors and officers of your company, liability insurance will also cover any civil legal action costs incurred.

The last type of liability insurance is for employment practices liability. It protects you against employment- associated claims like sexual harassment, unlawful discrimination, wrongful dismissal and so on.

What is Employment Insurance?

Insuring yourself and your employees in the event of an accident or illness at the workplace will protect you against expensive compensation claims. To avoid these, consider taking up insurance for workers compensation and personal accidents and illnesses.

Should your employee injure himself on the job, worker’s compensation will be able to provide him with wage replacement and medical benefits – navigate here for more details. In exchange for this coverage, the he gives up his rights to take legal action against you for the incident. It protects you from further legal complications. As a business owner, you aren’t covered by worker’s compensation. So, you should also consider taking out a personal accident, illness or life insurance policy in case you are unable to work.


The importance of insurance for your business is easy to see when you understand the enormous benefits the right insurance policy can do to protect your future and that of your business and your family. Avoid any serious financial consequences by doing the right thing and take up business insurance to keep the things and people most important to you safe and protected.


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