Operating a business without business insurance now is not a good idea especially
at the start of the business, when a claim could wipe out your business and your
finances before you even get it going. As a new business, you still face many of
the same risks as an existing business, such as a client or customer suing you,
someone getting hurt, getting in an auto accident, or being exposed to a fire or
flood.
To develop a sound business plan that grows as your business does, consider the
following types of business insurance now as part of your risk portfolio:
General Liability Insurance
Designed to protect new and existing small business owners from a wide range of
liability risks, general liability insurance provides coverage for financial loss
resulting form injury claims or property damage claims caused by you, your employees,
or third parties as a result of conducting business operations. The loss, damages,
or injury could be groundless or through negligence. In most cases, a general liability
insurance policy comprises three areas: property damage and bodily injury, medical
payments and expenses, and personal and advertising injury. While it’s often part
of a policy package, it can be a standalone coverage policy.
Workers Compensation
Through workers’ compensation insurance, workers are provided with medical care
and lost wages coverage in the event of an injury or illness, while the small business
employer is assured that the employee will not bring suit against him. If you have
hired employees, then you need workers’ compensation business insurance now; it’s
also mandated by state law. However, state workers’ compensation statutes vary by
state.
Commercial Auto Insurance
Do you travel by vehicle to your client’s premises? Do you rent or lease vehicles
to carry out business operations? Do your employees use their own vehicles when
on the job? Do you use your car to take clients to lunch? If you answered yes to
any of these questions, then you need commercial auto insurance. Commercial auto
insurance protects a business owner by covering the business use of cars, vans,
trucks, or other covered vehicles in the course of operating its business. Medical
expenses relating to vehicle accident injuries and property damage resulting from
vehicle accidents are paid under commercial auto insurance in accordance with the
policy’s terms. Other covered perils and risks include hail and vandalism damage.
Umbrella Insurance
The definition of an umbrella is a protecting force, and umbrella insurance does
just that. Because your existing liability insurance has limitations and exclusions,
it’s unable to cover all expenses, even though it can cover most situations. However,
umbrella insurance is an extra safeguard designed to give new and existing business
owners extra coverage against property damage and bodily liability. Umbrella insurance
helps to fill in the gaps in insurance coverage with higher protections limits and
coverage of certain exposures not covered by primary insurance.
Whether you are a new startup or an existing small company without insurance, it’s
important to get business insurance now. By working with your insurance agent, you
can craft a solid business insurance plan to protect you from the multitude of business
risks that may come your way.
