As a new business owner, you may be aware of some of the risks involved. You’ve put everything on the line to make your company successful. You’ve chosen to forego time off, bypassed paydays, and made additional sacrifices to make sure your business is thriving.
With all you’ve invested you don’t want to add additional risks by not having proper small business insurance coverage. Commercial insurance, or insurance coverage for your small business, is a critical component of minimising the potential dangers and protecting the financial stability of your business.
Finding the right insurance for your business doesn’t have to be difficult. Just like making a budget to save yourself money daily, you’ll need to sit down and work out what needs to be covered.
With all the options out there, however, it may feel a little overwhelming. In order to take the stress out of selecting the best insurance options, here are three business insurance tips for startup business owners! That way you can focus more on your startup, and less on the stress of finding the best protection!
Obtain General Business Insurance that Fits Your Company
General business insurance should fit the specific needs of your company. There are a lot of misconceptions as far as insurance goes. For instance, many make the mistake of thinking their homeowner’s insurance will cover their home-based business. While others feel that because they rent the space they conduct their business in, the burden of insurance is on the property owner.
All of the assets for your business should be covered in your policy. If it is owned entirely by the business, then it needs to be covered! Thus; to best protect your company, you should make certain that the following items are all included under the protective umbrella of your insurance:
- Inventory
- Office Furniture
- Office Machinery (This includes computers, printers, etc.)
- Tools
- Extensive supplies
- And so much more!
You will need an insurance policy that will cover losses related to theft, vandalism, fire, and weather damage. Keep in mind insurance coverage for business is not one-size-fits-all. Talk to an agent about your specific business, the important assets, and what you may need as far as general policies.
Secure General Liability Insurance
General liability business insurance protects a business the business owner from financial loss due to an injury or harm sustained by others while conducting business with the company. This type of loss could include a shopper who may slip and fall in a store, a delivery person who is injured on premises, or even a customer who is injured due to the negligence of an employee.
General liability coverage will often cover not only the legal costs of litigating a claim against the company but any settlement or judgment. Settlements that the injured party may be awarded can be significant, so having insurance will help to protect your business from these types of hazards is a great idea.
Insurance agents are trained to think about all the possible hazards associated with owning a business. Trust their judgment on coverage. You won’t regret it in the long run!
Seek Additional Coverage as Necessary
Every organisation has their own unique level of risk that business insurance mat cover. A delivery company, for example, you may have a fleet of vehicles, or a van you have leased to cover with business auto insurance. If an owner uses his or her own vehicle for business purposes, that may require special coverage. Even if employees use their personal vehicles to run errands for the company, this activity should be covered by commercial auto insurance purchased by the business.
Another type of risk a business may face is if a business produces a product and that product causes harm to customers. In this case, a product liability policy would be best for handling any claims against your product. You are best served by talking with an agent who specialises in affordable business insurance for a variety of business segments and to discuss your activities in detail.
Startup Business Coverage and the Best Insurance Tips for Business Owners
It can be tempting for a startup business to cut back or even eliminate business insurance coverage. However, this would be a detrimental move on part of the owner. You could not only allow for a fatal blow to your company should an accident occur, but also risk everything that you’ve worked so hard for! You can absolutely avoid a life of regret simply by getting all of your company’s assets covered.
Conclusion
Get the peace of mind you need when starting your company by purchasing the appropriate commercial insurance coverage. Find the general coverage that would work best for your business, secure general liability coverage, and find areas of your company where you will need additional, more specific coverage. Using these three tips, you’ll not only allow your company a safety net, but you’ll be able to help your business grow securely!
