Starting up a new business venture can be exhilarating. Being an entrepreneur is an aspiration a good number of people have since it accords them financial freedom. Nonetheless, before you can reap the profits of your business, you have to put a considerable amount of money at the onset for you to build a successful company. Thus, some new business owners may think that they can skimp on insurance in the beginning and only buy policies once they are turning a large profit. The reality is that the lack of insurance can be the downfall of your business. Financing a lawsuit can be exorbitant and end up running your business into the ground. This article will help you narrow down the types of business insurance that you should invest in.
If you have commercial premises, property insurance is a must-have. A common misconception is that this type of insurance protects the building. In reality, property insurance covers your business-related belongings. For instance, computers, furniture and products will be covered by property insurance. You should also note that if you work from home, you could also invest in property insurance for the items you need for your business including merchandise, equipment and more.
General liability insurance
This type of insurance is one of the most basic policies that every business should have. As its name implies, this policy provides an all-encompassing coverage for property damage that your business may acquire and for work-related injuries. For instance, general liability offers insurance for errors and omissions that may occur when providing products or services to your customers. Rather than having to contend with a lawsuit, your insurance provider will cover the costs of the subsequent consequence of the errors and omissions. General liability insurance is coverage that all business, whether online or physical, should have.
Workers' comp insurance
If you have staff, be it one person who works for you or a team of people, workers' compensation is another crucial policy that you need to purchase for your business. Some newbies may think that workers' comp will be a waste of money, but they are not taking into consideration the expenses they will have to bear if one of their employees acquires a work-related injury and sues the business! Not only will you be required to pay for medical costs, but you may also have to pay your employee for lost wages, emotional trauma, etc. With workers' compensation, the insurance company will cover your employees and your business!Share