In business, “Better safe than sorry” entails more than just avoiding mistakes in operations or in building the brand’s image. It is also about protecting assets from unavoidable, unpleasant circumstances, both man-made and natural.
[related|post]While some business owners consider insurance as an expense rather than an investment, seeking and paying for legal protection of equipment, vehicles and similar properties that are prone to calamities or theft is one way to lessen risks of unwanted shutdowns.
Michael Rellosa, president and general manager of Fortune General Insurance Corp., enumerates the different kinds of insurance policies that business enterprises must consider.
“Insurance for businesses depends on what type of business you would have,” says Rellosa. For instance, if the business is a restaurant, he suggests owners get a comprehensive general liability policy. It covers claims in four basic categories of business liability: bodily injury, property damage, personal injury and advertising injury. This policy also covers the cost to defend or settle claims against restaurants like poor sanitation, improper food handling and preparation and other cases, even if the claims are fraudulent.
For businesses that are product-oriented, products liability insurance is also an option, the Fortune Gen head says. This policy covers for claims after a manufactured product has been sold, or for claims from an operation that the manufacturer has already completed. As companies are legally responsible for any damage or injury that their products cause or inflict on consumers, it would be a smart move for business owners to get this kind of coverage, he adds.