Business Insurance 101: What You Need to Know
So you started your own business. You’ve seen a hole in the market or come up with a brilliant new idea. You’ve got things underway and maybe even started to make a bit of money. Well, before you take one step further, it’s time to think about insurance for your business. After all, you took a big risk starting your own company and that means you need to mitigate those risks as best you can.The hardline fact about coverage and businesses is that you need it. Everything you have for your business, from vehicles to basic liability, requires insurance. Without it, you could put everything you’ve built in jeopardy, open yourself up to crippling financial issues, or even be in violation of the law. But not to worry, here are some basics about coverage of your business that can help you get the protection you need to succeed.
Types of Business InsuranceThe first thing you need to understand about coverage and your business is the different types that exist. Depending on your business, you may need specific kinds of insurance. In general, business coverage can be broken down into three broad categories: insurance for owners or partners and key employees, coverage of business earnings and property, and liability insurance. Here is a breakdown of each different kind.Insurance for Business Owners, Partners and Key EmployeesIf you own a business, you need specific types of coverage depending on how your business is set up.
Liability covers you in the event of a mistake or accident for which you can be held responsible. There are three kinds to consider when you own a business: personal liability, product liability, and professional. These cover you from personal responsibility, something going wrong with your products, and from lawsuits filed by your clients, respectively.Starting your own business is a big risk, but that doesn’t mean you should take unnecessary chances. If you own a business, you need the right coverage. Be sure to shop around and find the insurance package that’s right for your business. If you have any additional questions, we can help you make sense of your policies to ensure you have the right kinds of coverage from the right kinds of insurance companies.