As is the case with any other small business you can think of, your bottled water company needs insurance. Some unfavorable things are likely to happen, and insurance is the best way to protect your business against such things.
Yes, you are optimistic. You see no reason why your business should have large debts. You don’t see reasons why a customer should file a product liability claim against your company. You see no reason why a small down payment should cause business disruption.
But, in business, reality is worth facing. When you drop that band of optimism, you will see a lot of things that could go wrong with your bottled water business. Only then can you think of insurance as the best way to protect your business against those unfavorable circumstances.
Even after you’ve identified a strong need to insure your bottled water production company, you are most likely left with a big question in mind: What is the best insurance coverage for my bottled water production company ?
How to choose the best insurance for your bottled water company
Well, there is no direct answer to that question. To protect your bottled water production business, you must accurately assess the risks you are likely to face and choose insurance accordingly. This explains why the insurance options you will need could be quite different from the insurance options that someone else running the same business will need.
Typically, however, you need insurance policies that cover your equipment, real estate and buildings, inventory, and business assets. Since you are offering a consumable product to the public, you will also need product liability insurance to provide coverage for your business in the event a consumer files a lawsuit against it.
Determining and insuring the correct types of insurance for your bottled water production company can make the difference between a successful business and one that is paralyzed due to uninsured or underinsured losses. Knowing which insurance policies you really need can also prevent you from paying too much for insurance you don’t need.
Making the right choice of business insurance policies begins with understanding the various options available as well as what each option represents. Here are the types of insurance policies that are likely to be relevant to your bottled water production business:
1. General liability insurance
This type of insurance will cover legal hassles due to accidents, injuries, and negligence claims. The policy will protect your business against payments as a result of bodily injury, property damage, medical expenses, defamation, defamation, the cost of defending lawsuits, and settlement bonuses or lawsuits required during an appeal procedure.
Having a general liability insurance policy is a must for your bottled water production business, even if you run it from home.
2 property insurance
This type of insurance covers everything related to the loss or damage of your company’s property that may arise from events such as fire, wind, hail, theft, vandalism, etc. The definition of property includes a wide range of things, including lost income, buildings, computers, company documents, and money.
There are two types of property insurance policies:
- All risk policies
- Specific risk policies
While all-risk property insurance policies will protect your business against a wide range of incidents, including those you might never think of, hazard-specific policies will protect against specific incidents, especially those that may occur at your location. business. You can also consider business interruption / loss of earnings insurance as part of the policy to protect your earnings if the business is unable to operate.
3. Product liability insurance
Since your company makes bottled water and sells it to the public, you will be responsible for the safety of your products. Product liability insurance will protect your business against financial loss as a result of a defective product causing bodily harm to the consumer. The policy will provide coverage for any medical expenses or damages incurred.
4. Workers’ compensation insurance
This type of insurance protects your employees from injuries sustained while performing their respective jobs. Typically, workers’ compensation insurance also prevents employees from suing their employers for on-the-job injuries. In some states and countries, this type of insurance is mandatory for all companies that hire employees.
Depending on the specific needs of your business, you may need additional types of insurance, such as commercial home insurance ( if you are operating your business from home ) and commercial auto insurance ( if you use vehicles for your operations ). You may need to contact an experienced insurance agent to seek professional advice on the best insurance options for your business.