Do I need Business Insurance now?

Operating a business without business insurance now is not a good idea especially

at the start of the business, when a claim could wipe out your business and your

finances before you even get it going. As a new business, you still face many of

the same risks as an existing business, such as a client or customer suing you,

someone getting hurt, getting in an auto accident, or being exposed to a fire or




To develop a sound business plan that grows as your business does, consider the

following types of business insurance now as part of your risk portfolio:



General Liability Insurance



Designed to protect new and existing small business owners from a wide range of

liability risks, general liability insurance provides coverage for financial loss

resulting form injury claims or property damage claims caused by you, your employees,

or third parties as a result of conducting business operations. The loss, damages,

or injury could be groundless or through negligence. In most cases, a general liability

insurance policy comprises three areas: property damage and bodily injury, medical

payments and expenses, and personal and advertising injury. While it’s often part

of a policy package, it can be a standalone coverage policy.



Workers Compensation



Through workers’ compensation insurance, workers are provided with medical care

and lost wages coverage in the event of an injury or illness, while the small business

employer is assured that the employee will not bring suit against him. If you have

hired employees, then you need workers’ compensation business insurance now; it’s

also mandated by state law. However, state workers’ compensation statutes vary by




Commercial Auto Insurance



Do you travel by vehicle to your client’s premises? Do you rent or lease vehicles

to carry out business operations? Do your employees use their own vehicles when

on the job? Do you use your car to take clients to lunch? If you answered yes to

any of these questions, then you need commercial auto insurance. Commercial auto

insurance protects a business owner by covering the business use of cars, vans,

trucks, or other covered vehicles in the course of operating its business. Medical

expenses relating to vehicle accident injuries and property damage resulting from

vehicle accidents are paid under commercial auto insurance in accordance with the

policy’s terms. Other covered perils and risks include hail and vandalism damage.



Umbrella Insurance



The definition of an umbrella is a protecting force, and umbrella insurance does

just that. Because your existing liability insurance has limitations and exclusions,

it’s unable to cover all expenses, even though it can cover most situations. However,

umbrella insurance is an extra safeguard designed to give new and existing business

owners extra coverage against property damage and bodily liability. Umbrella insurance

helps to fill in the gaps in insurance coverage with higher protections limits and

coverage of certain exposures not covered by primary insurance.



Whether you are a new startup or an existing small company without insurance, it’s

important to get business insurance now. By working with your insurance agent, you

can craft a solid business insurance plan to protect you from the multitude of business

risks that may come your way.