What types of insurance does your new business need?
November 26, 2013
In the rush of hanging out your own shingle, don’t overlook a central need: business insurance.
Starting a new business is an exhilarating time full of possibilities, yet also terrifying – mostly due to the unknowns, the risk. You need to protect your business assets if there are problems; natural disasters and legal liabilities are just two of the possible obstacles you may encounter. Incorporated businesses enjoy more protection than sole proprietorships and partnerships, but it’s still possible to be held personally liable for all or some business-related incidents and accidents. Insurance is a must to consider.
Here are the five types of small business insurance all business owners should research to determine which types and how much they need.
- General liability – This covers claims of physical damage to the property of others or injuries to others, as well as protection from claims of libel and slander.
- Professional liability – Also known as Errors and Omissions: This protects professionals from financial loss associated with negligence in the provision of their services, both real and unfounded.
- Business property insurance – If you are renting office space, check with the landlord or leasing company about what insurance coverage is required under your lease. You may need to purchase business property insurance. This type of policy usually covers the structure of your building and the contents of your office.
- Auto insurance – If you use your car on sales calls or visits, make sure your personal auto policy covers this type of use. If you have company cars, they need to be insured as well.
- Workers’ Compensation – coverage you’ll need under state law if you have employees.
The types of insurance you need depend on several factors unique to your business. Talk with an agent to discuss or complete our quick quote form to get started with a business insurance quote.
The contents of this article and the linked materials do not offer legal, business, or insurance advice related to the needs of any specific individual business. Claim scenarios are for illustrative purposes only and are subject to the terms and conditions of the policy in question. Please consult your professional advisor.