Starting an LLC is an exciting time. Now that you work for yourself, you will earn all of the profits generated by your work. Of course, you will also have a lot of expenses. Furthermore, if something goes wrong, you will be held professionally and financially responsible. Here are 4 protections you’ll need to have in place.
Funding
Starting a business requires significant upfront costs. While most small business owners start with a moderate budget, they need funding to properly get their dreams off of the ground. The funding comes in the form of small business loans, personal loans, and personal finances.
Public Liability Insurance
Public liability insurance, or general liability insurance, protects your company in the case a client or customer experiences an accident. The insurance will cover up to a certain amount for medical bills and legal fees. You will need special insurance if your industry involves professional services, such as training or teaching students. You will also need special insurance if you sell products to cover you in the case your products cause damage. Consumables require additional insurance on top of that. An insurance adjuster can help assess your company’s risk to set you up with an adequate policy that still fits into your new business budget. Increase your insurance policy as you grow.
Commercial Property Insurance
If you have a storefront, you will also need commercial property insurance. Your liability insurance protects your visitors, but you also need insurance to protect your business and the property inside your store. The commercial property insurance protects you in the case of vandals who may graffiti your storefront or break windows, stealing items inside.
Retain a Small Business Lawyer
A small business lawyer can guide you on your new professional journey, especially if you’re new to the legalities of running a small business. Your lawyer can help you fill out paperwork properly and explain the different types of insurance policies to you, as well as which policies you need by law and which ones will offer additional protection, ensuring you stay legal. They will also help you in the case a client does initiate litigation against your LLC.
When you have these 4 protections in place, you will be able to move forward every day with peace of mind that you not only adhere to legal requirements but also have protection that exceeds expectations.
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