It is important to protect your business. As a business owner, you need business insurance to protect your assets and your business. You must be prepared to face potential lawsuits from unsatisfied customers and employees. Insurance can help you save money on repairs and maintenance bills. It can also help you financially after a major accident occurs within your business.
Business insurance is important because it covers risks associated with starting and operating a company. Small business owners need protection just as much as large companies, such as corporations. Since this is so important, you might want to hire a broker to compare rates and features based on your specific company. This might get better results than shopping around on your own.
Types of Coverage
Liability is probably the best starting point for a new business owner. Liability protects you if any employees or customers are injured on the premises. You are covered for legal fees associated with lawsuits and the costs of compensating an injured person.
Product liability insurance is important if you produce a product. It helps you financially should your business be sued because of a defective product. Then there is professional liability insurance to handle claims about defective or negligent services. If you are in the medical field, then medical malpractice insurance is required.
Workers compensation is more for the employees. You should buy this type of insurance to prevent lawsuits and protect the well-being of your workers. You also might want to consider property insurance for damages to the building interior and exterior. This will reimburse you in the event of a fire, theft, earthquake, or water damage.
Business interruption insurance is worth considering as well. It provides monetary support if your income is stopped due to losses from an accident or natural disaster. And if you have vehicles as part of your business, commercial auto insurance is needed for those vehicles.