With more and more individuals choosing to work for themselves by opening their very own businesses, there is a boom of information that can be found about how to manage this new adventure of yours.
Unfortunately, much of the talk on the internet is limited in regard to the proper insurance practices for new startups. After all of the work you have poured into your business, do not let a lack of insurance cost you the entire investment. Instead, be smart with your money and purchase the right type of insurance right up front.
By making sure that your business has the right insurance coverage, you can ensure that your investment is fully covered. Take a look at all of the different types of insurance you may want to consider purchasing.
General Liability Insurance
General liability insurance is basically non-negotiable for small business owners. Not having a general liability policy might be the mistake that ends your business forever. This type of insurance covers you from any claims that customers, competing businesses, or even other types of claims that are made against you.
Commercial Property Insurance
Commercial Property Insurance is necessary to protect the property and belongings of the business (such as tools or computers). In the event of a disaster, theft, or other occurrence, this is the type of insurance that would replace or pay for pay for repairs. This is another type of insurance that the small business owner really cannot function without.
Workers Compensation Insurance
If you have any employees beyond yourself, then you will be required by law to purchase a worker’s compensation policy. Of course, this is yet another way to protect yourself from devastating loss due to an accident. Workers compensation covers the employer and the employee when there is an injury or death on the job.
Professional Liability Insurance
This type of policy is a little bit more complicated, but it essentially protects you from clients or customers who assert that your product or service is not performed as it is advertised or expected. A Professional liability Policy can be a huge help in saving your business an extraneous amount of money due to claims that are likely beyond your control.
There are many different types of insurance that may be applicable to your small business, but the four outlined here are the most likely to affect small businesses in the grand scheme of things. Make sure you talk to your insurance agent about how to fully protect all aspects of your small business and keep from losing valuable money on the investment that you have spent time building.
There is no question that insurance is a crucial part of a new startup. Without it, one small misstep could cost the business owner a pile of money or worse could ruin the whole business before it even gets to take off. Be sure to protect what you have worked so hard to build by investing in reputable insurance policies.