The purpose of having insurance for business is to help cover the costs in the event of a claim associated with damages to property and liability claims from individuals. Without business insurance or with inadequate business insurance, paying out-of-pocket for costly damages, legal claims and expenses could be potentially devastating on a business and personal level.

At the time of writing some states are in lockdown and draconian restrictions have been placed on how, where, when and with whom citizens can congregate as a result of the rapid spread of the COVID 19 virus. Looting has not reared its ugly head so far, although fighting over the last pack of toilet rolls or bottle of hand sanitizer has been reported from time to time.

Liability insurance

Now might be as good a time as any to make sure the insurance which covers your business premises is up to date and offers adequate coverage. If the business premises are broken into by someone desperate for car spares, building materials or something else which he or she might need to convert to cash, make sure you are covered. If they injure themselves while on your premises, you might just find they have the cheek to sue you for damages – be warned.

Verifiable insurance

In some states, businesses are required to have specific types of insurance. As an example, Nevada state law requires that a handyman requires a contractor’s license and verifiable business insurance if the work exceeds $1,000 in value. Laws vary from state to state and can become confusing if work is carried out across state lines.

Others such as Florida do not require handyman insurance, although liability insurance is something which any business owner should have. Possession of a contractor’s license is required if work involves construction, plumbing or electrical work. Without a license, your insurance coverage would be null and void, so always make sure you have the necessary paperwork and certification.

Food and beverage insurance

If a business is primarily delivering food to customers’ homes direct, or is a restaurant serving customers on the premises, Liquor Liability and Temperature Change insurance. The latter is good cover in the event of fridge or freezer unit breakdown or damage. This could cause spoilage of foodstuffs which may run in to hundreds, maybe thousands of dollars.

The Liquor Liability is cover for food outlets which serve alcohol to patrons. Supposing a customer gets worse for wear as a result of drinking too much liquor, ends up starting a fight or causes damage to the property in a drunken rage. This insurance cover will protect your business against liability claims from other patrons, staff and anyone else involved and mitigate property repair costs.

Retail insurance

Running any retail business is open to risk from third party suppliers. If you sell regular lines but suddenly one of your main suppliers goes out of business, you may be out of pocket as a result of paying up-front, then not receiving the goods for which you have paid.

Business Income Dependent Properties is insurance which will help you cover any income which may be lost as a result of situations which are beyond your control.

Regardless of the business you operate, you should have adequate coverage for as many eventualities as possible. In these uncertain times in which we find ourselves, the need for all types of insurance coverage which apply to businesses has never been greater.