Many entrepreneurs quickly become overwhelmed as they consider the number of coverage options for their business. The right business insurance helps a small business get off the ground and grow into a successful venture, but finding suitable financial protection is vital for starting any enterprise.
Considering the many options available to entrepreneurs, you might feel confused and not know where to start. Thankfully, this two-part article will help you understand all elements to make a well-informed choice.
The best advice an insurance broker can give you is to take steps to cover your business and the people in it. The most important coverage is the one that takes care of your workers in the event of an accident or illness. Even small companies can find affordable insurance for their workers if it knows what it is looking for.
Once your employees are covered, the next step is to protect your company from genuine threats of fire and theft. Almost every business will be the victim of at least one theft event, and most small business owners will have at least one of their properties damaged by fire. To know more, you should continue reading this article.
Types
The types of business insurance you should consider must be based on your business' nature. These are the most common ones you may need:
General Liability - This covers third-party lawsuits, property damage, or advertising injuries like defamation or copyright infringement.
Business Interruption Insurance - If your business is temporarily closed due to a covered disaster, this insurance could provide you with extra funds to continue operations.
Workers’ Compensation - This insurance provides coverage for employees injured on the job. If you have employees, it is something you should look into.
Errors and Omissions Insurance - If you are a professional such as an accountant or a lawyer, you need to protect yourself in case of malpractice lawsuits.
Business Owner’s Policy (BOP) combines general liability insurance and commercial property insurance. This insurance is usually cheaper compared to investing in these policies separately.
Commercial Property Insurance - This coverage covers repairs and replacements of stolen, lost or damaged business property.
Legal Requirement
Business insurance is not just something you buy only if you think you need it. Depending on where you are in your company and the type of business you are in, you may find that buying insurance is necessary to protect yourself and your clients.
For example, suppose you rent a commercial space. In that case, your landlord may require you to buy a liability insurance policy that protects your company from any claims of bodily injury or property damage. Mortgage lenders require this type of policy as well.
For most small businesses, workers’ compensation insurance is also necessary. You must carry this type of insurance once you hire your first employee. Workers' compensation insurance is often purchased as part of a business insurance package. It is wise to shop around for a policy that offers the coverage you need and is competitively priced.
Conclusion
If you are a sole proprietor, you are personally liable for any debts or lawsuits against your business. However, by purchasing insurance, you can manage your risks. If you have an employee and caters to clients in your home, you can purchase a liability policy that protects you if someone gets hurt or injures another person when visiting your business.
Now that you have a better grasp of finding a good business insurance plan, you should consult with New Wave Insurance. We can help you find the right coverage for your company. Call us now for more details.