Business owners are primarily interested in minimizing the risks to which they are exposed. At the same time, they must contain the expense item dedicated to business insurance. Today we will see which are the essential policies that must be taken out.
1. Is liability insurance for companies mandatory?
The CR insurance for companies covers the possible liability to be assumed by the company for having caused damage to a third party.
Examples:
- In any company, customers, suppliers or even employees can be involved in an accident. The floor is freshly mopped and a customer slips and suffers injuries. This policy would cover the risk, through the “Employer’s Liability” guarantee.
- Company that carries out a job for a client and the job is defective. If the client ends up claiming for the assignment, we are talking about Professional Liability. This is increasingly requested by companies.
In your case, if the answer to the following question is YES, you should also contract it: do I charge my client a fee for my services?
2. Is property and casualty insurance necessary for a company?
Sometimes the damage insurance policy can be combined with the Civil Liability guarantee. By damage policy we are talking about insuring the material losses that we may suffer in case of flood, fire, theft in our facilities…
Depending on the case, we will insure only our furniture, stock and machinery (if we are renting) or also the building, the fixed parts of the office or the warehouse (if we own them).
Example: while the warehouse is closed for the weekend, a short circuit causes all the stock and machinery in the warehouse to catch fire. This insurance would indemnify the company for the insured amount.
3. Other optional business insurances for my SME
Before the start of our activity, liability insurance and damage insurance are the fundamental insurances that we have to subscribe. However, we can also consider the following when setting up a company.
- Sick leave insurance for the self-employed who is starting his business (since in case of illness or accident he will have very little income, and needs to supplement it to make ends meet).
- Insurance of agreement when we already have employees in our charge, and it is established by the sectorial agreement in which we frame our workers.
- Cybersecurity insurance is becoming an increasingly common policy in the face of ongoing cyber-attacks on small and medium-sized companies.
- Directors and officers insurance
- Etc.
If you need us to help you choose the insurance that will best protect you and your business, we are at your side. Call us and contact our Business Insurance Department.
