All businesses need business insurance. There’s no way to get around it. New businesses, unfortunately, often overlook the importance of business insurance in the midst of all the other expenses required to get a business off the ground.
While the costs of insurance may seem prohibitive at first, it is one of the most important expenses new businesses need to take seriously. The fact of the matter is that you have too much to lose to risk starting a new business without adequate business insurance coverage.
What does a Business Insurance Policy Cover?
There are many different types of business insurance solutions available for small business owners. Most insurers offer a standard business owner’s policy (BOP) that includes coverage for a variety of circumstances. A quality business insurance policy will vary from one provider to the next, though most include differing amounts of coverage for some, or all, of the following.
Business Interruption Insurance
Professional Liability Insurance
Workers Compensation Insurance
While these coverages are all important for businesses, many business owners consider them a starting point or absolute basic insurance plan. Most businesses will need additional coverage beyond what a standard BOP provides.
General liability insurance is of particular importance for many businesses today, for example, due to the litigious nature of society. With that in mind it’s wise to consider purchasing additional liability coverage beyond what the standard business policy provides. In most industries the additional insurance investment is well worth the peace of mind it provides.
What Doesn’t a BOP Cover?
The standard business owner’s policy does not cover every contingency. There are some specific things that are not covered by this policy. Some of them, are extremely important types of coverage to have and others are growing more important by the day.
The following are a few examples of what you might need depending on the type of business you run:
Professional Liability or Errors and Omissions Insurance
Business Auto Insurance
Liquor Liability Insurance
Cyber Liability Insurance
Employment Practices Liability Coverage
Product Recall Insurance
Of course, if your new business has employees, there are other types of insurance coverages you need as well. One of which, the average business owner absolutely must have is workers’ compensation insurance coverage. Under the new healthcare law, it is wise for most businesses to offer health insurance to employees as well.
Business insurance needs for startups vary somewhat according to the industry you’re serving and the type of work you do. It’s important to work with a qualified agent to determine what your business needs are and which package of products will best meet them now and as your business grows in the future. There is no denying, though, that your business needs insurance.