4 Ways To Bulletproof Your Small Business From Disaster

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Natural disasters strike when least expected. Such calamities often catch most small businesses off guard. This explains why close to a quarter of small businesses today are unable to get back on the feet in the wake of a major disaster. Most businesses are at risk of either a natural or manmade disaster. As such, planning for the post-disaster recovery will go a long way in ensuring your business gets back on its feet after disaster strikes. Having the right insurance policies is apparently the best way to prepare for disaster. Here are four types of insurance policies every business should have.

Insurance policies for small businesses

Commercial general liability insurance

General liability insurance is ordinarily the first type of insurance policy most businesses purchase. This is attributed to the fact it is often a mandatory requirement before signing commercial leases and other business contracts. Ideally, general insurance policy serves to protect your business from third party claims resulting from bodily injuries, operational losses, or property damage emanating from your business operations. Who needs general liability coverage anyway? Consider getting this coverage if you or your employees do the following:

  • You interact with clients at a personal level
  • Access client equipment’s
  • Represent your clients in any way
  • If you sign any contracts

Property insurance

Unlike general liability insurance, which only covers third parties, property insurance covers losses and property damage resulting from different events. Losses linked to break-ins, vandalism, and natural calamities, are often covered. As a tip, it is advisable to go through the policy document and know what is insured before making a decision.

From a business perspective, the term property is very broad and can be used to refer to buildings, company assets, records or even supplies. Thus, you need to be very specific when choosing property insurance to ensure all possible risks are covered. Ideally, understanding all risks and their potential implications should form the basis of making this financial move to protect your business.

Health insurance

Health insurance is a must for small businesses looking to grow. There are many benefits accrued to having a health insurance plan for your employees. It can help you attract and retain top talent, improve employee productivity, along with savings on tax credits and deductions.

Health insurance can also help you lower some of your operational costs considering that most employees are willing to take a lower salary when health insurance benefits are offered by the insurer. You do not have to go shopping for health insurance quotes after disaster strikes. Being proactive and providing required cover to employees will help you gain a competitive edge over other businesses.

Business interruption insurance

This type of insurance policy serves to protect small business owners from lost or reduced earnings in the case of a disaster. Ideally, this means that you are assured of income even after disaster strikes. So, if the stock is consumed by an insured peril, business interruption coverage can help recover lost revenue.

This coverage is also meant to help the business meet some of its financial obligations resulting from the loss. For instance, this insurance might help relocate to a new residence because of a natural calamity by settling any related costs. You pre-loss earning form the basis of reimbursement under the business interruption coverage.

Conclusion

It is your responsibility as a business owner to ensure everyone, and everything in your business is cared for and protected. Investing in a decent amount of coverage comes with peace of mind. This calls for extensive research and purchasing the right insurance policies. Every business faces its unique risks. However, the insurance policy discussed in this article should be considered by every company regardless of its size, industry or location.

 

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