Most companies know about the usual types of business insurance, like general liability or workers compensation insurance. However, small business owners or entrepreneurs might have to bolster conventional insurance plans with policies designed to safeguard businesses from uncommon, but real, risks.
Here are three lesser-known business insurance policies that can benefit a small business owner or a starting entrepreneur:
1. Business Life Insurance
This type of insurance adds a layer of security to businesses in case it experiences an unexpected and sudden hit to revenue. You can choose from three essential policies – key person insurance, business expenses insurance, and business partner insurance.
Key person insurance is for that indispensable employee that every small company has. For instance, the lead salesperson or the staff member who's both CFO and hiring manager. You can have this person insured for trauma, permanent disablement, or death. The insurance will cover either the loss of profit or capital purposes to be used to pay off debt.
Business partner insurance supplies the funding so that the surviving business partner can buy out the other partner. Meanwhile, business expenses insurance covers fixed expenses, like rent and employee wages. If something untoward happens to the main income generator, this insurance covers the daily costs of running a business.
2. Cyber Liability Insurance
The majority of businesses these days have enough digital presence that could become a liability. Whether your company has a database of leads or a trove of customers' credit card information, one hack is enough to cause a lawsuit. Aside from that, cybercriminals can also damage your internal network and cause productivity to go down.
Cyber liability insurance ensures that your company is secure against hackers, cyber attacks and various issues connected to a business' internal network, payment system, and website. It can protect companies from losses brought about by data breaches while also covering the cost of credit monitoring and customer notification.
3. Home Business Insurance
Millions of entrepreneurs and small businesses operate out of their residences. However, home insurance doesn't cover a home business. The lack of coverage could prove a problem if someone stole your inventory, your equipment is damaged, or an employee is injured. While you can put a rider that extends your home insurance coverage to some of your business activities, a home business insurance is a better solution. It can cover theft and basic liability and can compensate your company for the loss of equipment or crucial documents.
The right insurance is sometimes the difference between a growing business and a failed one. Talk to your agent about other policies that can help safeguard your company. At First Iowa Insurance Agency, Inc., we aim to provide comprehensive insurance policies that make your life easier. You can get more information about our products and services by calling our agency at (319) 393-5262. Get your free quote today by Clicking Here.