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If you’re a budding entrepreneur, you may be asking yourself, “Do I need business insurance?”
If you want peace of mind, the answer is yes. A workplace accident, fire, or a lawsuit can take you by surprise and completely devastate your business. That’s why it’s important that you get coverage.
In this post, we’ll explain how to know what type you need.
Do I Need Business Insurance? 5 Types to Look for
The type of coverage you need depends on what type of business you have and what risks are involved. Read on to find out which ones apply to you.
1. Commercial Property Insurance
If your business has a physical property, such as a store, showroom, or office, you’ll need commercial property insurance.
If your property is damaged by vandalism, an accident, or even weather conditions, you can get back on your feet afterward.
As well as protecting the property itself, it will also cover any expensive equipment, supplies or stocks that are stored inside. That means you’re covered in case of theft, too.
2. General Liability Insurance
Every year, around 2.8 million work-related injuries and illnesses are reported.
If an employee or customer of yours experiences one, you could be liable. That’s why general liability insurance is essential for most businesses.
3. Commercial Auto Insurance
If you employ people to drive, such as delivery drivers or sales representatives, you should protect yourself with commercial auto insurance.
Otherwise, you’ll have to pay out in case of an accident.
Work-related crashes cost employers billions of dollars every year. Make sure you’re not one of them.
4. Errors and Omissions Insurance
Do you provide consulting services? If so, you’ll need errors and omissions insurance.
This covers you in case a client claims that they experienced financial loss as a result of taking your advice. It also covers any legal costs that may occur, too.
Sometimes, this can be included in general liability insurance. Read through your policy carefully, and talk to your provider about the possibility of combining them.
5. Business Income from Dependent Properties Insurance
If you’re a retail business owner, it’s advisable that you get this type of policy.
This will cover you in case a third party causes you to lose income. For example, if a supplier or manufacturer suddenly shuts down and is unable to fulfill your order. With this policy, you can recover any losses that occur as a result.
Always Be Prepared
Now you know that instead of asking yourself “Do I need business insurance?” you should be asking “Who can give me the right coverage?”
Your business should be protected, for the safety of you and your employees. But that doesn’t mean you have to shell out on hefty premiums.
Business insurance isn’t one-size-fits-all, so shop around for a policy that fits the specific needs of your business. That way, you can cut out what you don’t need.
Check out our business and finance news section for more advice for business owners.