All companies must have financial protection in the form of insurance. In some situations, this is required by law.
But what types of insurance are most important to new businesses? And what is the best way to get one?
The main types of insurance to consider.
These are some of the main types of insurance any business should consider:
If your business owns a building or significant property, you will need to get property insurance to protect it. This is not much different from homeowner insurance and may be required by your financial institution if you have taken out a loan to buy that property.
General liability insurance.
In addition, you want to have general liability insurance in place. General liability covers your company for damage and personal injury that occurs on business property. However, the coverage may be limited so you may want to complement it with other forms of liability insurance. This is often seen as the first line of defense when it comes to liability.
Professional Liability Insurance.
You can expand your insurance coverage with professional liability insurance. This is especially important when you are offering services to your customers. This type of coverage for you if you damage a customer’s property or cause personal injury through errors, omissions, and other forms of professional neglect.
Product liability insurance.
If your company manufactures a certain type of product, product liability insurance is a must. This type of insurance will protect your business if you are ever sued for a product defect, manufacturing defect, or other problem resulting from a product that is not in circulation.
Roof liability insurance.
If you want to be even more careful, you can invest in roof liability insurance. As the name suggests, this insurance policy offers comprehensive insurance coverage on top of your other insurance policies. If your first lines of defense don’t adequately cover you, your top line of defense will come into effect and hopefully cover the rest.
If you plan to own a company vehicle or if you plan to use your vehicle for business purposes, you must have professional car insurance. This kind of Car insurance is very similar to personal car insurance, but you need to make it clear that this vehicle is used for business purposes.
Employee Comp Insurance.
Most states in the United States require employee compensation insurance. It’s a good investment even in states where it’s not technically required by law. Workers’ Comp protects your employees if they are ever injured while on the job, regardless of who is to blame or how the incident occurred.
Business interruption insurance.
If you are concerned about the possibility of business interruption, business interruption insurance can be a great investment. If your business is temporarily down due to natural disasters or other emergencies beyond your control, this insurance pays out some of the revenue you would otherwise expect and helps you keep your doors open.
Data protection / cybersecurity insurance.
Today, more and more insurers are offering policies related to data breaches and cybersecurity. The right cyber insurance policy will cover your business financially if you are ever the victim of a data breach or similar costly cybercrime. It’s a nice backup in case your primary cybersecurity strategy fails.
Take personal insurance policies into account.
When starting a business, you should also know that in addition to these business insurances, there are several types of personal insurance policies that can be used to protect you financially. For example, have you taken out health insurance for yourself? Do you have life insurance and / or disability insurance to protect yourself?
How to buy business insurance.
If you want the best deal, coverage, or service with your business insurances, follow these important tips:
First, make sure you are getting quotes from multiple insurers. That way, you may be able to find a better deal or broader coverage. Don’t settle for the first vendor you come across.
Often insurers are willing to give you a discount if you have several policies at the same time. Try to Bundle all of your insurance policies together with the same place if you can.
Look for discounts.
Find out if you can get additional discounts. For example, can you lower your property insurance rates if you get a safety inspection? Every little bit counts.
With the right corporate insurance, your business is much better protected – and in some cases, legally compliant. Take your time, choose the right guidelines, and don’t skimp on your financial future.