Starting up a business can come with a lot of headaches. There is a lot that you need to do in order to get up and running, and some things can slip by the wayside as a result. One thing that you should not let slip however is your insurance needs. Your business needs different insurance than you do, and failure to get the right coverage can result in some very large problems down the road. Here is a list of the types of insurance your business may need. Take a look at the list, and see which ones apply to you.
Professional Liability Insurance
Also known as Errors and Omissions Insurance, this type of insurance protects a business from negligence claims. Negligence claims can be filed against your company when mistakes or a failure to perform results in an injury. Your business will most likely need a customized plan to cover it, as there is no one-size-fits-all plan. The plan you get will depend on your type of business, and the standards for your particular industry.
Workers’ Compensation
As soon as you make your first employee hire, you should get Workers’ Compensation Insurance. In the event that an employee is hurt while on the job, this insurance will cover medical treatments, death benefits, and disability payments. Even if you are working in a relatively safe location – like an office building – there is still the risk that someone could slip and fall, or even get an injury like carpal tunnel syndrome, so you will want to make sure you are covered.
Home-Based Businesses
If you start your business out of your home, your normal home-owners insurance will not give you the same protection that commercial property insurance does. It is a good idea to talk to your insurer about additional insurance to cover things like inventory and equipment in case something happens.
Vehicle Insurance
If your company requires the use of vehicles, you will need commercial auto insurance in order to be fully protected. There are many different factors that go into determining what kind of auto insurance you need, so you will want to speak with an agent to make sure you are getting the right coveraqgefor your business. You will especially want to look into auto insurance companies that specialize in auto insurance for businesses, such as Mercury Insurance.
Property Insurance
One insurance that your company must have if it owns or is leasing a space is Property Insurance. This type of insurance will cover things like inventory, furniture, equipment, and signage in the event of a fire, theft or a storm. It should be noted that this will not usually cover events such as floods or earthquakes, so if your area is prone to mass-destruction events, you will want to talk to your insurance agent about additional coverage for these perils.
Business Interruption Insurance
Lastly, if something were to happen to your business, you will want insurance that covers the loss of income. This is particularly true for businesses that require a physical location to do business. If your area is prone to events that could cause your business to shut down, talk to your insurance company about Business Interruption Insurance.
Better Safe than Sorry
When it comes to insurance, it is better to have too much rather than too few. When disaster strikes, or something goes wrong, you will want the peace of mind knowing that you are completely covered. Talk to your agent about your business’s needs, and make sure they customize a plan that is right for you. When the time comes to use them, you’ll be happy that you have the proper coverages in place.
