Part of starting a new business is making sure that you have the right type of insurance to help if something goes wrong. It is especially important for a new business to have insurance because there are many things that can ruin it when it’s first getting started that wouldn’t be as hard to handle latter down the line when it’s more established.
Professional liability insurance covers a business against negligence claims due to harm that results from mistakes or failure to perform. Sometimes known as errors and omissions (E&O) insurance, it can be customized to fit individual business types.
Property insurance is a must for any business and especially a new one. This insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or theft. Just remember that this usually doesn’t cover in cases of disaster or weather-related damages.
Workers compensation insurance will save your business if there is an issue with an employee. This will cover medical treatment, disability and death benefits in the event an employee is injured or dies because of his work with that business. Even if employees are performing seemingly low-risk work, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome could result in a pricey claim.
If you have a home-based business, you should still consider business insurance. homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. If you’re operating your business out of your home, ask your insurer for additional insurance to cover your equipment and inventory in the event of a problem.
In a disaster or other catastrophic event your business operations may be interrupted for an indefinite time. This is a good reason to have business interruption insurance. By having the right insurance in place, a business can avoid a major financial loss due to a lawsuit or catastrophic event.
Check with an insurance agent for more information on these types of insurance as well as others that are available to new businesses.