If you are an entrepreneur thinking about starting up your own business, you will be exposed to a variety of risks. Even before you hire an employee, you are at risk, which is why insurance is important. Without the right coverage, a start-up business could be wiped out before it even gets off the ground. These are the six types of insurance that a business should consider obtaining immediately.
- Professional Liability also known as Errors and Omissions, this covers a business against negligence claims due to harm that results from mistakes or failure to perform or your services cause them to suffer a financial loss.
- Business Property coverage for items such as office equipment, signage, inventory and furniture from fire, storm or theft.
- Workers’ Compensation coverage for medical treatment, disability and offer death benefits to employees for work related injuries.
- General Liability protection for businesses in the event it is sued for causing bodily harm to a person and/or damage to property. It also helps cover the cost of your defense if needed.
- Business Auto or Hired/Non-Owned Auto If company vehicles will be used, they need to be fully insured to protect the business. Hired/Non-Owned Auto Insurance is needed if the vehicle is not in the company’s name but the employee has an accident during company business or an employee rents a vehicle for business use.
- Business Interruption coverage for your business in the event of a natural disaster or catastrophe that causes your business to close for a period of time.
If you plan to start a business based out of your home, you will need additional insurance on top of your homeowners policy. Being proactive and having the right insurance plan in place can help a business avoid a major financial loss due to a lawsuit or an unforeseen event. If you are starting a business, visit AssuredPartners NL Property & Casualty to learn more about the best coverage for your business needs.
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