Your new business or business concept is valuable. You will likely invest a huge amount of your own time and resources in making the company successful.
Obviously, you want to protect your investment from unpredictable circumstances. There are many kinds of insurance that can help protect a business. What kind of coverage will your startup require?
Will you have a physical location?
One of the first things to consider is whether or not you will need property insurance. If you operate a storefront or other business where people can visit, you will need coverage for any accidents that occur on the property. If you work from home, you may want to consider adding more coverage to your homeowner’s insurance policy aimed at protecting you and your equipment.
Will you have employees?
If you will have staff on the premises, you will most likely need to take out a workers’ compensation insurance policy. These policies protect workers from losses if they get hurt and you from liability over any worker injuries or illnesses.
Are you ready for unpredictable events?
As a new business, you may not yet have had to explore all the situations that could negatively affect the company. You may also not have enough capital to cover months of operating expenses if you can’t do business.
Business interruption insurance can help cover your company’s operating costs when you suddenly can’t open for business or produce your products anymore. This coverage can replace employee wages or cover your rent and mortgage.
There are other kinds of insurance that could help as well. If you make a product, product liability insurance will protect you against claims due to defective production batches. Errors and omissions insurance can help professionals who perform services for the public. Reviewing your business model with an experienced attorney for potential sources of liability can help you determine what coverage you need.