When first beginning your business, it is important from the start to have the right insurance coverage. Otherwise, your company can find itself with some real problems.
While you may not have experience with insurance, ask a trusted advisor or friend to refer you to a good insurance agent. Having a trusted insurance agent can help you make the right choices and stay informed about your policies.
But before talking to an agent, it is often best to do some research first to understand your options and identify your own needs. Here are some of the most common types of insurance for business, and how they protect you.
1. Home-Based Businesses
If you are doing business out of your home you need to be sure to beef up your homeowners insurance. Homeowners insurance will not cover your company’s equipment and inventory if theft or disaster were to happen in your home.
2. General Liability Insurance
First and foremost, every type of business should have this type of insurance. This provides you with protection if you, your employees, or your products or services cause or are alleged to have caused bodily injury or property damage.
3. Worker’s Compensation
This is a must. By law, if you are an employee, you are required to participate in workers’ compensation programs which covers employees if they are injured on the job.
4. Business Interruption Insurance
This type of coverage protects you against lost cash flow or profits if a catastrophe were to happen that interrupted your normal business operations.
5. Data Breach
For many companies, especially in this digital age, you are storing sensitive information not only about your company and your employees, but also about clients. This data may be stored on computers, servers, or in paper files. With this data can come a lot of worry about being hacked. If a breach occurs either through physical theft, or electronically, this policy will provide protection against the loss.
6. Property Insurance
This one is similar to the home-based businesses insurance. If you own your building or even if your renting office space, it is important if you have business personal property. This includes any type of office equipment, computers, and such that your business has purchased and uses. This coverage protects your business if there is a fire, theft, vandalism, etc.
7. Commercial Auto Insurance
This protects vehicles that you use for your company, whether it carries employees, products, or equipment. You may even need to consider non-owned auto liability to protect the company for employees who drive their own cars on company business.
8. Product Liability Insurance
If you are manufacturing a product to sell, this insurance is very important. It protects your company in case of damages caused by your product to a third party.
9. Business Owner’s Policy (BOP)
This is a bundle of services based on your companies specific needs. This is often the best way to save money because a bundle often costs less than individual coverage. This bundle often includes property insurance, business interruption insurance, liability insurance, and more.
Gaining the right insurance for your business keeps your company from major problems and issues down the line. Investing time into researching and discovering the right fit for your needs will ultimately benefit you in the long run.