Hard work is essential when it comes to establishing a small business. Though the decision to start your own is exciting, it can be risky. It requires you to put your career, personal finances, and time on the line to achieve your goals.
No matter how passionate you’re about becoming an entrepreneur, you shouldn’t ignore the risks that come along with it.
Types of Insurance for Small Businesses
When choosing coverage, consider the following things;
- The nature of the services you provide
- Your industry’s risk profile
- Type of and number of properties you own/lease
- The number of workers/employees you have
- Planned growth
- Your revenue
Here’s a list of some common types of insurance to protect your small business from unforeseen risks.
Commercial General Liability Insurance
If customers or clients are able to walk into your business then commercial general liability insurance is necessary. It will protect your company in case of any lawsuits. This can pay for a person’s medical bills or legal costs due to injury or physical damage.
Commercial Auto Insurance
If you or your employees drives a company car you’ll need commercial auto insurance. Note, a person’s personal auto insurance will not cover a company vehicle.
Workers compensation insurance protects your employees in case of illnesses or injuries. If an employee has to be out of work for a period of time due to injury on the job, this will secure them with an income still. Remember that workers compensation is mandatory in majority of states.
Commercial Property Insurance
Entrepreneurs also need protection against any type of property damage. Commercial property insurance offers protection and manages risk for your business. It protects your equipment, assets, and personal property from theft, natural disasters, and fires.
Employment Practices Liability Insurance
Any company with workers should consider buying EPLI. It can cover you from plenty of service-related claims such as:
- Sexual harassment
- Gender discrimination
- Wrongful layoff
Whether you start on a small scale or invest in a large corporation, make sure you have this type of insurance. EPLI claims are rising in number and severity. Therefore, investing in the protection of your employees is a wise decision.
Cyber crime is a pressing issue that can soil your good name. Hackers can get into your system and access your client’s or customer’s personal information. Customers want to know their information is safe with the company they’re working with. This insurance will protect you in case a data breach occurs. The aftermath can be expensive so make sure you have cyber insurance.
Your business needs insurance that can protect it from the various risks associated with running a company. Accidents can occur and you don’t want to be left paying for those expenses. You’ve worked this hard to create something that’s yours, make sure it’s properly protected with the right coverage.