There are many important considerations when it comes to starting your own business, the least of which is acquiring proper insurance. According to a survey by Marshall & Swift, 75 percent of businesses in the United States are underinsured, and a New York Times article reports 40 percent to have no insurance at all. This can spell disaster for start-up entrepreneurs. Without adequate insurance protection, your business is at risk of becoming decimated by lawsuits involving accidents, negligence, and employee or customer injuries, not to mention theft and damage from fire and other natural disasters. Running your own business can be fun and rewarding while building independence, there are a few essentials that you must know.
The Essential Coverage
One requirement to secure for your start-up business is Workman’s Compensation. According to the experts at Cerity Insurance, Workman’s Comp is required by almost all states as soon as you hire your first employee. This type of insurance provides the necessary coverage to help employees pay for medical bills and partial lost wages when they are hurt at work. It protects your business from the risk of being sued by the worker as well. Having General Liability insurance is another vital. This policy protects in the case that you, your employees, or your products or services create or are alleged to have caused any type of bodily injury or property damage to a third party. Commercial Property Insurance is also a must if you own a business structure and/or items used for business, such as office equipment, computers, inventory, and expensive tools. It will help protect you in case of fire, vandalism, theft, smoke damage and other weather-related damages, and can also help recur the expense of replacing stolen business property.
Cover The Wheels
If you have vehicles that are used for business, opt to secure Commercial Auto insurance. This coverage protects vehicles that carry employees, products, or equipment from damage and collisions. If you have employees who drive their own cars on company business, have a non-owned auto liability to protect the business in case the employee has inadequate auto insurance coverage of their own. In most cases, the non-owned liability insurance can be added to your BOP policy.
Opt for Umbrella Coverage
A BOP insurance plan is a popular choice in today’s business world because it bundles all the required coverage a business owner would need, and can often cost less than all the individual coverage plans put together. BOP’s will often include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance. Based on your business’s specific needs, you can customize the BOP to more effectively protect your business.
Don’t find yourself short-handed when it comes to insuring your business. It can make the difference of not only losing your business but your personal assets as well.