When you start a business it is safe to say that you are going to have a long list of expenses. While each and every one is important, one detail you don’t want to overlook is business insurance.
Believe it or not, many start-ups overlook the importance of securing coverage from day one. This may not be an expense you want to pay for but it is something you need in order to give you and your business protection as well as peace of mind.
When shopping for commercial insurance, there are minimum coverage levels to consider. Regardless of your industry, buying a policy is a wise investment.
1. Property Insurance
Property coverage is one of the most important aspects of any business insurance policy. This holds true for almost every business, with the exception being those that are home based.
Property coverage protects you in a number of ways. For example, if your building is unable to be used due to damage associated with fire or another natural disaster you will be covered.
2. Liability Coverage
Do you have customers visiting you at your office? Do you have employees on site everyday? If so, liability coverage is very important. This will protect you in case a customer, employee, or other visitor is injured while visiting your office.
With the right liability coverage, you are also protected should you sell a product that causes damage to the customer.
3. Loss of Income
There is nothing worse than being forced to take time away from your business due to an event that is out of your hands. With loss of income coverage, you can make your way through this challenging period. Otherwise, anything that forces you out of operation could result in losing your business altogether.
4. Record Protection
Regardless of your industry, there is a good chance that you have important records on hand. At the very least, you probably have tax records somewhere in your office. Losing any information could lead to a variety of problems, especially if you are required to comply with industry specific reporting requirements.
Note: Record protection insurance is typically included in a standard business policy.
5. Industry Specific Coverage
Depending on your industry, you may need some sort of coverage that is not included in a standard policy.
Do you work with extremely expensive equipment day after day? If so, you must make sure you have more protection than usual. Are you a service professional, such as a contractor who makes repairs on other people’s property? In this case, purchasing additional liability coverage would be in your best interest.
By focusing on these five components, it is much easier for you to purchase a policy that meets your every need.
No matter if you are starting a new company or need to purchase insurance for an existing entity, it is important to make a move sooner rather than later. Everyday you go without insurance you are putting the well being of the company at risk. Once you have what you need, you can move forward with your business knowing that you are protected at all times.