Explore Business Insurance Options

“Business insurance” is a large umbrella term that covers a wide variety of different insurance policies, some of which may be of interest to you and your business.  Business insurance will be a large part of your expenses as a business owner.  Using your discrimination to know which types of insurance you need and which types of insurance you don’t need will help you save money in the long run.  This article will cover the main types of business insurances available to you as a business owner.

General Liability Insurance

General Liability Insurance is probably the most important type of insurance you will get for your company.  This insurance will protect you against liability claims, any kind of legal issues that may arise from negligence or employee/personnel error, and sometimes property damage.  However, depending on your policy, property insurance may be a different policy.  Every business owner will want to have General Liability Insurance.

Product Liability

Depending on what you’re selling, you may want to consider purchasing insurance on product liability.  If your product poses any kind of threat to customers or has the potential to be dangerous due to faulty manufacturing, you certainly want to consider product liability.  If your product is something that is digestible, involves electricity, or is a piece of powerful machinery, you will want to add a product liability policy to your company.

Protecting your business from being sued for negligence is of the smartest things you can do for the safety of your company and employees.

Commercial Automobile Insurance

Just like you have a policy on your personal vehicle(s), you have to purchase automobile insurance for the vehicles registered to your business.  These policies will protect against damage, theft, and pay for any damage caused to others by your vehicles.

Workers Compensation

Once your business is protected, your next focus should be protecting your employees.  Policy requirements vary from state to state, but you will be required to purchase some form of workers compensation insurance for your employees.  Workers Comp. not only gives your employees financial support should they get an on-the-job injury, but it protects you as a business owner form being sued in the event that one of your workers is injured on the job.

Health Insurance

For most start-up companies, providing your employees with health insurance is simply not a feasible option.  The costs are simply too high.  However, if you can afford providing your workers with health insurance, it makes your company more competitive in the market place.  Employees are much more likely to be drawn to your company if it has health insurance and other benefits.

Business Interruption

This kind of insurance might be superfluous for some startup businesses.  Essentially, having this policy will let you continue operations with additional cash funds in the event of an emergency that would ordinarily bring your business to a grinding halt.

Key Person Insurance

This kind of insurance is like a life insurance policy for your company.  It will protect your employees and partners in the event of your death. If you (or someone else) possesses knowledge and training that no one else in the company has, then the company may not be able to continue on in the result of your death or serious incapacitation.  Key Person Insurance will provide funds for hiring or training your replacement.  The policy could also give other members of the business the wherewithal to purchase your part of the business.

There are many other types of insurances that may be pertinent to your business needs.  However, we have highlighted a few you may want to investigate as you start your business!

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