As soon as you start your business and register it, you should have in mind that you are entering into a risky environment. You will be exposed to specific risks, and even before you hire a first employee, have in mind that starting a business is not that simple, but it can be rewarding.
That is why you should have appropriate insurance coverage. That way you can avoid catastrophe and bankruptcy due to some event that caused injuries or lawsuit that could wipe your business from existence.
However, you will have extensive access to many insurance coverage’s and types so that you can protect yourself against potential dangers and risks.
Since most insurance agencies today are using tools like the schemeserve software, it is much faster and convenient to get and boost the coverage you choose. Of course, some of them are mandatory, or compulsory, which means that laws and regulations would obligate you to take them as a precaution. On the other hand, others are not mandatory, but having them will ease your life along the way.
We decided to present to you the most important insurance policies that your small business should have and obtain for additional protection.
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Property Coverage
It does not matter whether your business leases or owns its place, because this is the mandatory insurance that you have to take one way or another. This particular type of policy will cover signage, furniture, inventory, and equipment in case of theft, storm or fire.
However, some disasters such as earthquakes and floods are not covered generally, but you will be able to talk with the insurer and agent so that you can add that point to the contract. Have in mind that you will have to pay a higher premium than without it.
If you wish to learn more on this particular type of coverage, you should click here for more information.
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Professional Liability
Errors and omissions coverage, or as we professionally say it liability insurance will cover your business against claims of negligence due to harm that resulted from failure to perform or mistake that you or your staff made.
Of course, you will not be able to find the policy that will fit all your requirements and liability issues that could happen. Have in mind that each industry features a unique set of concerns that you have to address by making a customized policy explicitly made for your business.
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Home-Based Businesses
Most new entrepreneurs and professionals start from their home since today the technology allowed us to do it with ease. However, homeowner policy will not cover your home-based business, and that is a fact, especially since it is not commercial coverage but a private one.
In case that you enjoy operating from your home, we recommend you to ask broker or agent so that you can get the additional point to your insurance that will cover the inventory and equipment you have in case something happens.
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Worker’s Compensation Insurance
As soon as you decide that you need help and hire a first employee, you will have to add a worker’s compensation insurance into your set of coverage’s.
Have in mind that it is mandatory and it will cover death benefits, disability and medical treatment in case that employee is injured or dies as a result of working.
Even if you are working in the low-risk industry, in some cases, slip-and-fall injuries or other medical conditions that happened due to the working environment such as carpal tunnel syndrome can lead to an expensive claim, and if you avoid coverage, you will bankrupt instead.
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Product Liability
In case those business manufacturers products that you wish to present to general market and to sell it further, it is critical to include in the list of business insurance coverage’s a product liability as the necessary way to prevent problems.
In case that your business takes every single security measure to make its product safe, you should avoid the risk that could easily shut you down.
Check this link: https://www.investopedia.com/terms/b/business-liability-insurance.asp to learn more on business liability insurance.
Sometimes, you can find yourself in a lawsuit due to a faulty product, and this particular insurance will protect your business from bankruptcy. Of course, it is not a general policy, which means that it has to be customized and made specifically for a type of product you are selling.
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Vehicle Insurance
If your company owns vehicles, you have to ensure them entirely so that you can protect your business in case of accident and liability that will come along the way.
At the same time, your business has to ensure against third-party injury, but we recommend you to take a thorough policy that will cover everything such as if your vehicle participates in an accident.
For instance, in some cases, employees are using their cars for business, and they require personal insurance that will cover them. However, the main exception to this particular idea is if they are delivering services or goods for a fee because in that case, they have to use specific cars.