As is the case with any other small business you can think of, your bottled water company needs insurance. Some unfavorable things are just bound to happen, and insurance is the best way to protect your business against such things. Yes, you are optimistic. You see no reasons why your business should run into huge debts. You see no reasons why a customer should file a product liability claim against your company.
You see no reasons why a “little” hitch should cause interruptions in your business. But, in business, it pays to face reality. When you ditch that blindfold of optimism, you will be able to 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 have identified a strong need to get your bottled water production company insured, you are most likely going to be left with one big question in mind: What is the best insurance cover for my bottled water production company?
How to Choose the Best Insurance for your Bottled Water Company
Well, there’s no straightforward answer to that question. To protect your bottled water production business, you need to accurately assess the risks you are likely to face and choose insurance accordingly. This explains why the insurance options you will need might be quite different from the insurance options someone else running the same business will need.
Typically, however, you need insurance policies that cover your equipment, real property and buildings, inventories, 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 case a lawsuit is files against it by a consumer.
Figuring out and securing the right types of insurance for your bottled water production company can make the difference between a successful business and one that is crippled due to non-insured or under-insured losses. Knowing which insurance policies you really need can also save you from paying heavily for insurance that you don’t need.
Making the right choice of business insurance policies starts with understanding the various options available as well as what each option stands for. Here are the types of insurance policies that will most likely be relevant to your bottled water production business:
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This type of insurance will cover legal hassles due to accidents, injuries, and claims of negligence. The policy will protect your business against payments as the result of bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure.
Having a general liability insurance policy is a must for your bottled water production business, even if you are running it from home.
2. Property insurance
This type of insurance cover everything related to the loss or damage of your company property that may arise from events such as fire, wind, hailstorms, burglary, vandalism, and so on. Under the definition of “property” falls a wide range of things, including lost income, buildings, computers, company papers, and money.
There are two types of property insurance policies:
- All-risk policies
- Peril-specific policies
While all-risk property insurance policies will protect your business against a wide range of incidents including those you may never think of, peril-specific policies will protect against specific incidents, especially those that are likely to occur in your business’s location. You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.
Since your company manufactures bottled water and sells it to the public, it will be liable for the safety of your products. Product liability insurance will protect your business against the financial loss as a result of a defect product that causes 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 doing their respective jobs. Usually, 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 compulsory for all businesses that hire employees.
Depending on the specific needs of your business, you may need additional types of insurance, such as home-based business insurance (if you are running your business from home) and commercial auto insurance (if you use vehicles for your operations). You might need to contact a seasoned insurance agent to seek professional advice on the best insurance options for your business.