Commercial Insurance Guide for New Entrepreneurs
As a new entrepreneur, you’re likely excited about getting your business off the ground but also recognize the risks of running your business. You know you need insurance, but you may have questions about the types of commercial insurance you need, how much you need, and where to get it.
An accident, major weather event, theft, or lawsuit could end the dream of your business before it gets well underway. Fortunately, a commercial insurance agency can provide all the insurance your business needs to succeed.
Here is everything you need to know about commercial insurance as a new entrepreneur to safeguard your business against loss or damage.
Understanding What Commercial Insurance Is Required
As a business just starting up, you may be tempted to skip buying insurance, perhaps to save on costs. However, you may be risking more than your business by not buying insurance; you may also be breaking the law.
Legal requirements vary by state. However, many states require that you have worker’s compensation insurance and unemployment insurance.
You may also be required to carry disability insurance and other types of insurance, depending on your industry. If you’re unsure of what your state’s requirements are, getting in touch with a commercial insurance agent can help.
Other Commercial Insurance You May Need
To safeguard both you and your startup, you may need commercial insurance beyond the minimum required by your state. Take a closer look at these common types of commercial insurance:
General Liability
Every business should have general liability insurance. It can cover you against claims for property damage, bodily injury, and medical bills, as well as libel and slander.
Property Insurance
Commercial property insurance can guard your building, inventory, and equipment against loss or damage. This damage may come from fire, smoke, wind, or vandalism.
Auto Insurance
A commercial auto insurance policy can cover your company if a work vehicle causes damage or injury. Auto insurance can also be helpful if a work vehicle is damaged.
Product Liability
If you’re involved in manufacturing, product liability coverage can be beneficial. This coverage can guard against financial losses from a defective product causing an injury.
Professional Liability
Professional liability insurance can be another safeguard for your startup. It covers issues like faulty work, claims of negligence, and poor management of assets.
Crime Insurance
Many new entrepreneurs aren’t aware of crime insurance. With crime insurance, you can recoup losses from fraud, robbery, employee dishonesty, and other crimes.
Commercial Umbrella
The limits of certain liability policies might not cover a claim. Commercial umbrella insurance can extend that limit to cover the difference.
Business Owner’s Policy
A business owner’s policy (BOP) can customize a combination of these common commercial insurance policies into one. This can help provide the coverage you need and potentially save you money.
How to Buy Commercial Insurance
Getting the right insurance doesn’t have to be difficult. To simplify the process, make sure you take these key steps:
Assess your risks
Work with a reputable commercial insurance agent
Shop around for the right insurance at the right price
Re-evaluate your insurance needs every year
The peace of mind that comes with securing the right coverage is well worth your effort.
Finding the Commercial Insurance You Need
Money often is tight when starting a business, but forgoing commercial insurance could leave you paying for claims against your company out of your pocket. Working with a commercial insurance agent can help you identify the risks your business faces and the commercial insurance you need to cover those risks.