One of the biggest fears of every business owner is that some major calamity or lawsuit will stick them with a bill that they cannot escape from, leading to the closure of their business and financial ruin. While that fear is real, good insurance can protect against catastrophic loss and allow your business to continue even in the event of a major accident. However, in some cases, you need more than standard insurance in order to protect yourself and your business from a major loss. Here are three types of business situations that call for additional insurance products.
Your Industry Is High-Risk
There is no question that some business areas have higher legal exposure than others. These are typically industries where there is a higher than normal probability of major damage to life or property or where the possibility of an incident occurring can result in a massive lawsuit. If you work in a high-risk industry, like construction or medicine, you will almost certainly need additional specialized insurance.
You Work With Heavy Machinery
Working with heavy machinery can be dangerous and increases the odds of an accident, injury or major property loss if something goes wrong. Indeed, it is the expense associated with machinery that is often the reason for getting additional insurance coverage. When there is an accident, it can be a huge one, resulting in a major business loss. It’s also worth noting that operating heavy machinery will also likely have additional requirements before you can even get insurance, like appropriate training, inspections, and certification. Make sure to take all precautions, including implementing all the recommended lockout/tagout procedures for workers who operate heavy machinery.
You Have High Legal Exposure
Some areas, like medicine, come with particularly high legal risks. This is for many reasons, including the structure of our legal system, the massive consequences if something goes wrong and the potential need for millions of dollars in lifetime care if there is an act of recklessness or negligence. The medical industry typically has high exposure to lawsuits, and that’s why it has its own medical insurance products that are available.
It’s important to remember that insurance doesn’t come with your business licensure and that it is up to you to make sure you are covered in the event something goes terribly wrong in your business. Make sure to talk with an insurance expert or lawyer to confirm that you are covered in the event of a worst-case scenario. Remember that the best time to find out you have the right insurance is before an accident or lawsuit occurs.
To make sure your business is covered in the event of an emergency, request a quote from us today on business insurance! We have lots of great options available.