To open a business requires a lot of confidence, knowledge and insurance. Insurance is the one thing that can protect a business from financial ruin. Imagine being in business and having someone slip and fall. There most likely will be medical bills to cover, loss of wages and possibly a pain and suffering award. If, as a business owner, you didn’t have insurance for this, you could be wiped out. Or perhaps a product you sell causes injury to someone, you will need insurance to protect your business from the lawsuit that will surely come. Liability insurance will cover these situations. To protect your building and property from damage caused by fire, vandalism, theft, etc. you will need to have property insurance. If there is an interruption of your business’s operation you can also get loss of earning/business interruption insurance.
There are additional types of insurances for business owners. If your business has automobiles or motor vehicles, you will need to have commercial auto insurance to cover these vehicles. Workers compensation insurance will protect your company from complications that may arise if an employee needs to use Workers Compensation. Each state varies on this type, so you will need to check on the regulations of your state.
Some insurances for business owners deal with the services issued by the business. Professional liability insurance will protect a business if there are damages from failing or improperly supplying services. Your general liability insurance policy will not cover damages from this. Services covered under this type of police are legal services, real estate agents, businesses that provide technology services and hair salons to name a few. Speaking of technology businesses, if your business stores data of customers there is something called data breach insurance that will protect your business against any breach of your system that jeopardizes their information.
There are some policies that cover multiple situations. You may opt for a business owner’s policy that would cover property insurance, liability coverage, business interruption insurance, vehicle coverage and crime insurance. By bundling your coverage you will see a savings in premiums. Finally, if you feel you need more insurance in addition to those mentioned you may opt for personal umbrella insurance. This insurance is an extension of any other personal liability, homeowners or automobile insurance you may have.
Knowing exactly what kind of insurance your business will require may be difficult to determine. By checking with an experienced business lawyer you can be certain to pick the perfect combination to protect your business.