So you started your own business. You saw a hole in the market or came up with a great new idea. You already have a deal and you may have even started to make some money. Well, before you go one step further, it’s time to think about insurance for your business. After all, you have taken great risks in setting up your own business, which means that you need to minimize those risks.
The important fact about coverage and business is that you need it. Everything you have for your business, from vehicles to prime liability, requires insurance. Without it, you could endanger everything you created, get in the way of finances, or even break the law. But don’t worry, here are some basics for your business coverage that can help you provide the protection you need to succeed.
Types of business insurance
The first thing you need to understand about coverage and your business are the different types. Depending on your business, you may need specific types of insurance. In general, business insurance can be divided into three broad categories: owner or partner and key employee insurance, business income and property insurance, and liability insurance. Here is a breakdown of each species.
Insurance for business owners, partners and key employees
If you have a business, you need specific types of coverage, depending on how your business is set up. These may include, but are not limited to:
• Life insurance – This protection protects your family in case something happens to you. If you are the sole owner of your business, this insurance is essential because business owners are personally liable for all business debts.
• Disability Insurance – If you are injured or ill, disability insurance will provide you with income for a limited period of time.
• Partnership Insurance or Buy-Sell Insurance – If you have a business partner, this insurance will help you buy the partner’s shares and continue to do business in the event of their death.
• Critical Illness Insurance – If you fall ill, this compensation will give you a lump sum of money to help you in the event of a situation.
• Key Persons Insurance – This protection protects you from the death or loss of employees who are key to your business.
Insurance for earning business and property
In addition to protecting individuals, your business may also need these types of insurance to protect your assets and income. Remember, a business that is missing your home may need insurance for your home. It is always a good idea to contact your coverage company and discuss running a business outside of your home.
• Property insurance – This insurance covers any building or property belonging to your business if it is damaged or destroyed by fire, earthquakes, avalanches and other such disasters.
• Content Insurance – If you have an asset or building that holds items you need for your business, such as a warehouse or store, this policy compensates for the loss of such content. Keep in mind that even if you are renting premises, you can still claim content insurance, as renting will probably make you responsible for what you put in the rented space. Home business owners will need to contact their insurance companies to discuss what needs to be included in their home policy.
• Business interruption insurance – In the event of an accident, this policy will cover you for the period of time during which your business will be unable to function properly.
• Motor Insurance – If your company has motor insurance, you are legally required to have insurance. If you use a personal vehicle for your business, make sure you do contact your insurance company.
Liability applies to you for any mistake or accident for which you may be responsible. If you have your own business, there are three types to consider: personal responsibility, product liability, and professionalism. This protects you from personal liability, something bad about your products and, consequently, from claims by your customers.
Starting your own business is a big risk, but that doesn’t mean you should risk unnecessary opportunities. If you have a business, you need the right coverage. Be sure to visit and find the right insurance package for your business. If you have any additional questions, we can help you understand our policies to make sure the types of insurance that are right for you are appropriate.