Starting a business is an exciting time, but it's also essential to make sure you have the right insurance policies in place to protect your company from potential financial losses. In some cases, you may even have a legal obligation to purchase certain types of business insurance. The federal government requires that all businesses with employees have workers' compensation, unemployment and disability insurance. Your business insurance needs will depend on the size and type of business you have, as well as the industry you are in.
Commercial insurance is designed to shield your company from financial losses in times of crisis or unforeseen events. There are many types of commercial insurance, each tailored to protect your business against a different financial risk. Supplemental business insurance takes effect after you've exhausted the limit of your liability coverage for a particular incident. It's always a good idea to consult an insurance expert to find the right combination of coverages so that your company complies with legal regulations and is financially protected.
The most common types of coverage included in a Business Owner's Policy (BOP) are general liability, property damage, business interruption, and workers' compensation. Business interruption insurance covers money lost due to damaged merchandise, lost revenue, and additional expenses, such as having to temporarily move the business to a new location. Also known as errors and omissions, professional liability insurance protects companies from the cost of damages or injuries that occur as a result of professional services provided by the company. A commercial property insurance policy safeguards the physical location of your small business and your business equipment, computers, and office furniture.
A business interruption insurance policy replaces a small business's loss of income if you need to close temporarily due to a loss covered by the policy, such as a lightning strike or fire. If you do business driving, you'll want to make sure you have auto insurance that covers you for any accidents while driving for business reasons. Insurance can protect you from a variety of losses, such as if an employee is injured, your office building catches fire, your company is sued, or your business partner dies. You should seek professional help to find the coverages that best protect your specific business.
There is no one-size-fits-all commercial insurance; instead, there are several types of insurance that can protect your business. It's important to make sure you have the right combination of policies so that your company is compliant with legal regulations and financially protected.
