Be Prepared: 4 Types of Insurance Coverage You’ll Need as a New Business Owner

As a business owner, you need more than a large profit margin to keep your business operating. You need insurance, and you need it now. There is no way to know when someone has plans for filing a claim against you that can take you to the brink of bankruptcy. It’s for that reason you have to be prepared with the appropriate insurance coverage. Keep on reading and find out which one suits you the best.

Property

One common type of insurance used to protect businesses with physical locations is property insurance. Whether it’s a fire or theft, the policy covers the loss of inventory, office supplies, and even furniture. However, if you want to be well protected against floods or other events resulting from natural disasters, you should have business interruption insurance as well.

Business Interruption

Life is full of unpredictable events such as natural disasters that may affect the profit-generating potential of your business. During such situations, the business interruption insurance is a must-have. This type of insurance is designed to protect a business from loss due to an inability to manufacture products or the absence of employees during a major crisis. Businesses with a physical location benefit the most from this coverage.

Worker’s Compensation

If you want to avoid expensive claims from a workers’ compensation attorney, you need worker’s compensation insurance. This coverage is mandatory if you have one or more employees. It is designed to shield you in case a member of your staff gets injured. The insurance covers the cost of medical treatment and other expenses that may result from an employee getting disabled or dying while working.

General Liability

It doesn’t matter which type of business you have you need general liability insurance. The policy is used to protect you in case you, your services, products, or employees have caused injury or damage to another individual or entity. Its main purpose is to protect your business from an otherwise pricey lawsuit.

As you can see, to run a business, you need insurance and the more, the better. Every insurance policy is different, and most of the time, you will need several to protect all the moving parts of your operation. It’s hard to anticipate when an earthquake or a workers compensation case will affect your business, so research every type of policy you might need and have them in place before is too late.