There are many reasons why a business may choose a less-than-adequate insurance policy. Business owners may be looking to save money, or they may simply not be taking into account the risks and liabilities attached to their operations. Despite many business owners’ hesitance, it is always a good idea to be alert of risks for your business and to patent your unique ideas. Legal proceedings can easily crush your business should they come about, especially if you’re not armed with a decent insurance policy.
So, having illustrated the importance of business insurance, what types are there? Here we give you a rundown of the different types of business insurance available.
Different Types of Business Insurance
These insurance types will be suited to certain businesses and industries more than others, so be sure to conduct a thorough assessment of the policy and read all the fine print before you come to any conclusions on which insurance is best for your business.
- General liability insurance: This insurance covers the legal liabilities resulting from injuries, accidents, or negligence claims. It is essential to have general liability insurance when operating a business. General liability insurance will cover property damage, damages incurred from medical expenses, legal defense fees, court settlements, and more.
- Product liability insurance: If your company sells, manufactures or distributes goods, then you need to have product liability insurance. The degree of risk attached to your goods will determine your premium. A company selling vehicle parts will have a higher degree of risk than a company selling clothes, for example.
- Commercial property insurance: If your buildings are vandalized, stolen from, or damaged by a natural disaster, this insurance is designed to protect your assets. You will subsequently be able to cover lost income and business interruption costs, as well as many other forms of damages.
- Errors and omissions insurance: This insurance is for companies which sell services rather than products. Numerous US states will actually require proof of errors and omission insurance before you can open your business’s doors legally. Malpractice insurance (for physicians) is a common type of this insurance.
Protecting Your Business in Other Ways
There are other ways to protect your business too, though they are more optional than they are mandatory. We would recommend, however, protecting your intellectual property with a legal patent. Being issued a patent means that your competitors cannot create or sell your product(s) within the United States.
There are two main types of patents available – utility patents, which protect machines and processes, and design patents, which protect your product’s overall ornamental design. Patents are a great way on ensuring that your competitors don’t steal your ideas or adapt them in order to siphon your customers and profits away from you.
You can also copyright, trademark, or create a registered trademark for your brand. A registered trademark is the most powerful of the three options, legally speaking, as requires you to file an application with the US Patent and Trademark Office. If approved, you’ll receive a federal registration certificate for your registered trademark.
Trademarks (regular ones) and copyrights don’t necessitate any paperwork or documentation; your intellectual property assumes copyright automatically under US federal law. Copyright does have its problems, however, and can lead to bitter legal battles as different parties claim ownership of a “copyrighted” thing.
It’s important to protect your business with the right insurance policies and documents, but it can be hard to know the best way to do this. If you’re looking to find out more about business insurance and other legal protections, get in touch with us today!