When you are seeking payroll funding for your business, make sure to purchase the insurance policies that are required for your particular needs. Not having insurance could lead to severe financial losses because of a loss of a structure, vehicular collision or an injury to an employee. Here are the types of insurance policies that are necessary to protect a business.
One: Product Liability Insurance
If you are selling products as part of a business, then having product liability insurance is essential. A customer who is injured by a product that is made or sold by a business can sue for damages. In addition, if an individual dies from using a product, their family can file a lawsuit.
Two: General Liability Insurance
- Property damage
- Personal injury
- Bodily injury
In order to request payroll funding from a funding company, a business may need to have this variety of business insurance in order to satisfy the requirements of an application.
Three: Professional Liability Insurance
Errors and omissions or professional liability insurance is necessary to protect professionals such as accountants, attorneys and architects who risk lawsuits for making errors while designing a building, preparing tax documents or working on a legal case.
Four: Property Insurance
Property insurance for business owners protects them from financial losses if a catastrophic event such as a tornado, fire or hurricane occurs that damages or destroys a building.
Five: Workers’ Compensation
All businesses that have employees must have workers’ compensation to provide financial compensation when an injury occurs. This form of insurance is designed to replace lost wages and pay for medical bills. When an employee collects workers’ compensation, they are not permitted to sue an employer for negligence.
If a business has vehicles that are used by employees, then commercial vehicle insurance is required. Some of the vehicles that are included in a commercial vehicle insurance policy include vans and forklifts.
Seven: Umbrella Insurance Policies
An umbrella insurance policy provides additional financial protection for losses that are beyond the other policies that you have purchased. This protection includes providing reimbursements for a building, equipment and vehicles.
Bring Along Documentation
When requesting payroll funding assistance from a company, make sure to bring along your business’s insurance policy information to make the application process faster.