Business insurance is a vital component of operations in nearly every industry, regardless of size, scope, or number of employees. However, there are certain industries where business insurance is integral to the company’s security.
This article briefly describes a few industries where comprehensive business insurance is not merely for peace of mind but to protect the business and the shareholders. For entrepreneurs considering an entrance into one of these industries, know that business insurance is one of the key components of a successful enterprise.
Logistics and Warehousing
Businesses involved in shipping, freight, and logistics are among the industries that most benefit from business insurance. Not only does business insurance in this sector cover third party incidents, inventory management accidents, and injuries sustained during loading and unloading, but it also insures the owners from liability in such instances.
In fact, comprehensive warehousing insurance policies often include coverage for malfunctioning equipment. Instances of electrical arcing, ammonia contamination, and other mechanical breakdowns are covered by the insurance policy. Rather than coming out of pocket to replace expensive machinery, the policyholder can keep his equipment up and running with a simple deductible to cover such repairs.
If you’re contemplating entering into the realty business, business insurance is the key to sustainability. An insurance policy designed for the realty sector includes things like guaranteed building replacement in the event of a loss and even rental income protection.
These policies also insure the actual property involved in the business, including things like computers and other equipment common to the industry. You are protected from losses that result from fire, as well as those stemming from theft or vandalism.
Business insurance policies can also be structured to include commercial automobile insurance for company vehicles, whether you are just starting out or you have an entire fleet in need of coverage.
Perhaps more than any other industry, businesses in the hospitality sector greatly benefit from the coverage of a business insurance policy. Coverage includes provisions for things like a privacy breach, if by some lapse in software a digital intruder manages to gain access to your store of customers’ credit card information. A policy can also be structured to include protection against loss of income resulting from instances of food poisoning or similar situations where the lodging is liable.
Without a comprehensive business insurance policy, businesses in these sectors would risk significant exposure to litigation from injuries, expenditures from equipment breakdowns, and other innumerable and unforeseeable potential liabilities.