So you’ve started your own business. You’ve seen a hole in the market or come up with a brilliant new idea. You’ve done things in the process and maybe started making some money. Well, before you take it a step further، it’s time to think about insurance for your business. After all, you took a big risk by starting your company، and that means you need to mitigate those risks as best you can.
The hard fact about coverage and businesses is that you need it. Everything you own for your business, from vehicles to basic liability, requires insurance.
Without it، you could jeopardize everything you’ve built, open yourself up to damaging financial issues, or even run afoul of the law. But don’t worry، here are some basics for covering your business that can help you get the protection you need to succeed.
Types of business insurance:
The 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 types of insurance. In general, business coverage can be divided into three broad categories: insurance for owners or partners and key employees, business profits and property coverage، and liability insurance. Here is a breakdown of each different type.
If you own a business, you need specific types of coverage depending on how your business is set up. These may include, but are not limited to:
• Life Insurance.This coverage protects your family if something happens to you. If you are the sole owner of your business, this insurance is key because business owners are personally liable for all business debts.
• Disability Insurance. In the event that you become injured or sick, disability insurance will provide you with income for a certain amount of time.
• Partnership insurance or buy-sell cover. If you have a partner in your business, this insurance will help you buy out your partner’s shares and continue running the business in the event of his death.
• Critical Illness Insurance. If you fall seriously ill، this cover will give you a sum of money to help you get through the situation.
• Key Person Insurance. This cover protects you in the event of the death or loss of those employees who are most important to your business.
In addition to coverage that protects individuals, your business may also require the following types of insurance to protect its assets and profits. Keep in mind that businesses that run out of your home may require coverage beyond your home insurance. It’s always a good idea to contact your insurance company to discuss running a business out of your home.
• Property Insurance. This coverage covers any building or property owned by your business if it suffers damage or destruction from fire, earthquakes، avalanches and other such disasters.
• Contents Insurance. If you have a property or building that stores things for your business, such as a warehouse or storefront, this policy covers the loss of those contents. Note that even if you rent out space, you may still need contents insurance as your lease will likely make you responsible for what you put inside the rented space. Home business owners will need to contact their insurance companies to discuss what should be included in their home policy.
• Business Interruption Insurance – When disaster strikes, this policy will cover you for the time that your business cannot operate efficiently.
• Vehicle Insurance – If your company owns vehicles, you are legally required to have coverage. If you use your personal vehicle for your business, be sure to contact your insurance company.
Liability covers you in the event of a mistake or accident for which you may be held responsible. There are three types to consider when owning a business: personal liability, product liability، and professional liability. These cover you from personal liability، something wrong with your products, and from lawsuits filed by your customers, 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 understand your policies to make sure you have the right types of coverage from the right types of insurance companies.