6 Kinds of Business Insurance you May Need

A row of wooden dominoes are toppling over but a man hold his hand out to keep the chain reaction from going any further above the words "Business Insurance"

Starting a new business involves a number of big challenges. Focusing on profits is not the only role of a new business owner; managing risk is also a key factor for success.

For a small business or new company, risk translates into potential legal and litigation costs. Legal actions can decimate a new business, often leading to bankruptcy.

Getting business insurance is essential for new businesses. However, business insurance doesn’t take just one form. Any number of the following business insurance types – or even others – may be necessary for your business.

Property Insurance

If your business has physical assets like a brick and mortar address, a vehicle, or manufacturing machinery, then you need commercial property insurance. Bad things happen all the time, and while theft is the most common, entire businesses can be wiped out by electrical surges that destroy computer equipment, floods that cover everything with water and mud, and errant drivers that run their cars through the store window. Accidents can’t be predicted so you should always protect your property just in case.

Workers Compensation

A must in all but one state in the US, workers compensation is protection for your employees in case they get hurt in the course of doing their job. This covers both physical injuries and stress/anxiety. Employers are required to have this insurance in place if they have workers; otherwise, they can get heavily penalized.

Business Insurance for a Home Office

Many people are under the mistaken impression that their homeowners insurance will cover their small business home office. However, most homeowner insurance providers will reject claims if they find that they are business-related because the coverage provided was for a private residential use. The one way to make sure your home office and contents are fully protected is to have a general business insurance policy in place that is tailored to a home office.

Product Liability Coverage

Do you manufacture goods for sale or refine them for retail? Then you’re going to need coverage for what you sell. There is always the risk someone can get hurt using your product, even if instructions are provided and clear. A product liability lawsuit can decimate a company quickly with thousands in legal fees even before the issue ever gets to court; therefore, it’s important to have this coverage in place from the start when running a production business.

Commercial Auto Insurance

No surprise, your business vehicle needs to be insured as well. The last thing you want is for all those 16-hour days spent on a startup destroyed because your commercial automobile was in an accident. And don’t forget roadside assistance – vehicle breakdowns in the middle of nowhere can be costly as well.

Business Interruption Protection

Believe it or not, there is actually a coverage now for business interruption, which in most cases is due to some kind of disaster. For businesses that rely heavily on daily or regular interaction, an interruption can have a serious negative impact. This coverage offsets that loss for the duration of the event.

These are just a few of the many kinds of insurances that may be necessary for your business. While the cost to have so many different kinds of insurance may seem daunting, not having the proper coverage can be cataclysmic. For help in determining exactly what kinds of business insurance policies you need, contact Schertz Insurance today.

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