There are lots to consider when launching a new business. Designing your logo, developing your brand, marketing your services, finding suppliers, and hiring employees are all necessary and essential aspects of creating an enterprise. However, there are other essentials you need to consider first.
Before your business can get underway, you’ll need to take out an appropriate insurance policy. Without it, your enterprise is extremely vulnerable, which means the time and money you’ve invested could be at risk. To learn more about what insurance means for your business, take a look at the different types of insurance cover you may need.
1. General Liability Insurance
In most states, your business will need general liability insurance to operate legally. This type of insurance covers you against claims made against your company due to damage inadvertently caused by your business. As well as paying for the cost of repairs, a general liability insurance policy can also cover the cost of legal expenses the company incurs as a result of the incident.
2. Workers’ Compensation Insurance
This is another form of insurance that is essential in the majority of states. If an employee sustains an injury at work or develops an illness due to their working conditions or job role, they are usually entitled to compensation. With workers’ compensation insurance, your business will be protected if it’s faced with these types of claims.
3. Professional Liability Insurance
If your company provides advice or a service that subsequently causes financial loss or damage, a claim may be made against the business. If advice has been given negligently, for example, the individual who has suffered the resulting loss could be entitled to compensation. Professional liability insurance provides cover against these types of claims and covers the cost of related legal expenses.
4. Commercial Auto Insurance
Auto insurance is critical for many businesses. If you or your employees are involved in a road traffic accident when you’re driving for work-related purposes, you may need to make a claim against your commercial auto insurance policy. Personal auto insurance doesn’t apply to business-related activities, so you’ll need specialist insurance for this.
5. Business Income Insurance
If your company’s revenue is limited due to circumstances outside your control, you could face losing your assets, capital, and working income. Business income insurance is designed to prevent an unexpected event from ruining your business. Whether your business activity is interrupted by adverse weather, fire, or criminal activity, such as vandalism, this type of cover could ensure your lost income is replaced.
6. Commercial Property Insurance
Your company’s property is likely to be invaluable to the running of your business. Your tools, electrical equipment, inventory, and premises are all essential for your business to operate. If these are damaged, lost, or stolen, you could be prevented from generating an income. When you have commercial property insurance in place, however, the cost of replacing these items should be covered, which means your business can continue to operate without suffering any significant loss.
7. Data Breach Insurance
For businesses, a data breach can have catastrophic consequences. As regulations regarding data loss become more stringent, companies can face hefty fines if a breach occurs. Furthermore, the financial implications of rectifying a breach and increasing data security can be considerable. To protect against this, taking out data breach insurance may be advisable.
Choosing the Right Insurance Policy
Although the above examples of business insurance are the most common types of policies, there are plenty of other types of commercial insurance coverage to consider. With so many options available, many business owners find the prospect of taking out insurance overwhelming. However, it’s vital to make sure you have the right insurance in place.
Having the right insurance policy won’t just give you peace of mind; it will ensure your business is appropriately protected. Furthermore, having certain types of insurance could be a legal requirement for your company.
Fortunately, obtaining the right business insurance isn’t as difficult as it seems. By contacting specialist insurers such as The Hartford, you can access the information and support you need. No matter what industry you operate in, you’ll find a range of suitable business insurance policies. What’s more – dedicated packages, such as small business insurance or a business owner’s policy, combine various different types of insurance under one straightforward policy.
Growing Your Business
Depending on the terms of your insurance policies, it’s likely you’ll need to renew them on an annual basis. When doing so, it’s important to assess whether your existing cover is still sufficient. As your business grows, your insurance needs will evolve too.
By working closely with your insurers, you can secure the best level of protection for your business as it grows. Whether you’re taking on more employees, expanding your services, or merely generating higher profits, remember to update your commercial insurance to reflect your success.