When you start a new business, there are so many things to consider. From securing an office space or storefront to registering your business to marketing and advertising, there is no end of things to consider as you get your business up and running. One of the things you do not want to overlook is taking measures to protect your fledgling company. When you supply a service or product to others and you hire employees, you are automatically at risk of certain types of lawsuits and claims. Here are 5 types of business insurance that are needed to protect your business startup.
1- General Liability Insurance
The first type of insurance that you will want to pursue is one that covers a broad range of issues and concerns for your business. General liability insurance protects you from a variety of things, including injury of clients or customers or accidental property damage. This insurance is also important because it protects you and can cover part or all of your legal costs for damages arising through advertising and copyright issues that result in slander or libel.
2- Commercial Property Insurance
While general liability insurance covers many basic needs, it will not protect all aspects of your business property. Commercial property insurance functions similarly to homeowners insurance, covering both your physical building and property and all of your business equipment within. This insurance will protect you from weather events, theft, or a fire and ensure that repairs and replacements are covered to keep your business running smoothly.
3- Commercial Auto Insurance
If you own company vehicles, commercial auto insurance is absolutely necessary. Any driving that you do for the purpose of your business will not be covered by your regular auto insurance. Additionally, if you have employees using these vehicles, it is essential to ensure that everyone and every situation is covered. Commercial auto insurance will cover bodily injury, property damage, collision, and more. These costs can quickly drain your business and personal funds, so it is crucial to ensure your vehicles are covered.
4- Worker’s Compensation Insurance
If you have even one employee, you will want to sign up for worker’s compensation insurance. In fact, some states require that you have this insurance. Worker’s compensation insurance will cover an injury or illness that an employee sustains on the job. It will help pay for appointments, medical care, and any follow up therapies that are needed to recover from or treat the injury. This insurance will also cover part of the employee’s pay from missed work due to the injury.
5- Commercial Umbrella Insurance
While this policy is not required, it is a good idea if your business has the potential for reaching your general liability insurance policy limits. It will extend the amounts that you can reach under other policies that you have and cover gaps in those insurances. This is ideal if you want to be abundantly cautious or if your business is at high risk for claims.
No matter the business type or size, every business startup needs insurance to protect againts the unknown.