As the owner of a Business, insuring your goods and services is a key way of protecting your finances. One error in installation or production of a single defective product could put you out of business. Consider these different methods of insuring the products and services offered by your company.

Warranty Coverage

If your business performs services to the public or to other businesses, you may wish to insure your services with a type of warranty. You can warranty your labor as a way of protecting the financial interests of your clients. For example, if you are a plumber, you may provide your clients with a 30 day warranty on drain cleaning services or a one year warranty on the replacement of plumbing fixtures. The warranty coverage would be a sort of guarantee that if the drain clogs again or the fixture suddenly falls off, you would return to the client’s location and redo the work at no cost. Many consumers look for this type of a warranty as a way of ensuring that the business does the work right the first time.

Product Guarantees

Businesses that make or distribute a product may offer a guarantee on those goods. The guarantee is a sort of Insurance that the product will be free of any manufacturing defects for a specific period of time. For example, if you produce windshield wiper blades, you might offer a six month guarantee that the blades will not crack, split or disintegrate under normal use conditions. Most product guarantees do not protect against misuse by the customer. This type of an exception protects your business against faulty claims of producing defective products.

Business Insurance

Business insurance can provide coverage for your products, services and physical location. If you operate a warehouse, having a Business Insurance policy may protect against weather damage from a hailstorm or wind storm that damages or destroys windows or roofing. Business insurance may also protect you against unforeseen losses, such as theft, burglary, arson, and other types of criminal situations. Purchasing business insurance may also protect your bottom line in the event of a natural or man-made disaster, such as a wildfire or rioting that prevents your business from opening its doors for a while. In some cases, business insurance can also protect your financial interests in case of a situation such as the unexpected death of a founding partner or criminal actions of an employee.

Liability Insurance

Liability insurance is another important way to protect your goods and services. If a person claims to have been injured because of your product or a service that you performed, liability insurance provides you with essential coverage in the case of a lawsuit. If your product injured someone during typical use, the liability coverage could settle the customer’s claim without you needing to go to court. Liability insurance may also provide you and your employees with protection in the event that you directly cause damage to a client’s property while performing a service. For example, if your plumber was installing a new water heater but caused damage to a client’s wall while bringing in the water heater, your liability insurance would cover your costs associated with repairing the client’s home.

Be sure to keep all of your business insurance policies up-to-date. If you offer a warranty or guarantee on the products or services delivered by your business, be sure to explain the terms as clearly as possible. Maintaining the right level of liability and business insurance coverage could make the difference between having to close your doors in the face of a lawsuit versus keeping your business open and being able to maintain employment.

Author Bio:

Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Rachelle recommends a certificate of insurance tracking to monitor insurance interests for businesses. Follow her on Twitter and Facebook: @RachelleWilber; https://www.facebook.com/profile.php?id=100009221637700