6 Types of Insurance Needed to Protect a Business

Property & CasualtyIf 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.

  1. 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.
  2. Business Property coverage for items such as office equipment, signage, inventory and furniture from fire, storm or theft.
  3. Workers’ Compensation coverage for medical treatment, disability and offer death benefits to employees for work related injuries.
  4. 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.
  5. 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.
  6. 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.

 

Source: entrepreneur.com

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