Starting a New Business? Here are 8 Insurance Policies You Need to Look Into!
The world of business has its rewards, but it also has its risks. One of the biggest fear that prevents many from being entrepreneurs is the fear of failure. And this isn’t only about the failure to make profitable business decisions, but it is also about the fear of making mistakes.
But these risks will forever be a part of running a business, and it should not deter you from starting your own venture. Insurance policies for businesses are all about minimizing these risks, helping you realize your dreams. In this article, we will walk you through some of the best insurance policies you should opt for as a business.
1. Professional liability insurance (Errors and Omissions Insurance)
The professional liability insurance covers the legal costs that arise from defending yourself against the negligence claims made by your clients. This scenario happens when the clients face some form of losses due to the advice or service that you had provided them.
The professional liability insurance covers your legal costs and some damages that will be specified by the insurance company. Different industries have certain variations when it comes to professional indemnity insurance coverage and conditions to compensate for different circumstances.
2. Product liability insurance
If your business specializes in making products for the general market, then a product liability insurance is a must-have. Professional Liability Insurance provides coverage for damages caused by your service/advice, while Product Liability Insurance provides coverage for damages caused by your products.
You might think about why you would need such an insurance cover as you are confident in your product. And this is why many businesses get stopped in their tracks after getting a lawsuit, as they weren’t prepared for it in the first place. Save yourself from such a misconception, choose a product liability insurance to future proof your company.
Medical insurance for employees is mandatory in the Dubai and Abu Dhabi. If you are hiring someone in your business or company, they must be provided medical insurance.
In Dubai, the DHA (Dubai Health Authority) put forward the law of mandatory medical insurance and this applies to all economic areas of Dubai, including free trade zones.
4. Property Insurance
Property Insurance for businesses also known as Commercial Property Insurance offers coverage for the physical assets of your company from damages. Natural disasters are not typically covered under the insurance policy. However, this is largely up to the insurance provider.
The benefit of property insurance cover is that it protects the contents within and outside of your building, granted that they are within the same property.
When your business possesses assets that are very valuable, it is always better to insure them.
People are the engine of one’s business and taking care of them will boost their morale and hence their performance. This is where the Worker’s compensation insurance comes in. If something were to happen to them, including death, while working for you, then you are liable to pay for their medical bills and work benefits.
One can combine Workmen’s Compensation with a Group Life policy at a nominal cost thereby providing your employees with a safety net in case something were to happen to them outside of working hours.
6. Business Interruption Insurance
Sometimes, events can unfold that can interrupt the working of your business such as a fire. And not being able to operate your business results in loss of income.
Business Interruption Insurance provides compensation for days where your business lost its income. This will help you pay the employees or pay off any standing dues that were caused when your business wasn’t able to operate.
The coverage of Business Interruption Insurance is based on the past records of business income. The extent of coverage is determined by the insurance provider. With a really good insurance provider, you can even get coverage for transport costs that would incur if you were to move your business to a new place.
If your business delves in digital technologies or services, then you will definitely need a Cyber Liability and Privacy Insurance. The insurance will cover the losses that happen to your business due to data breaches or cyber crimes against you.
Since more and more businesses are adopting the online business model, the need for Cyber Liability and Privacy Insurance carries more weight than ever before.
8. Vehicle Insurance
In the UAE and many parts of the world, vehicle insurance is mandatory. If your business own more than two vehicles, you are eligible for fleet insurance. The benefit of choosing fleet insurance is that it a single insurance that can be applied to all the vehicles.
It saves you both time and money, plus you don’t have to bother with individual insurances and their paperwork. The ease of use is also felt when claims are made as the process is much quicker and easier.
Choose the best for your business, we are at your service!
Starting a business can be nerve-racking, and choosing an insurance policy can be confusing. However, they are important for the sustainability of your business.
Leave the hard work to us, we will help you choose what is best insurance policies for your business. Our experts will review your business and suggest the best insurance policies based on the type of your business and growth stage from the best insurers in UAE. Contact New Age Insurance Brokers today and grow your business today.