When you start a new business, it’s crucial to prepare for unexpected interruptions so that obstacles don’t lead to financial challenges or loss of credibility. The goal is for your business to not only last but to go from strength to strength. Insurance can help you achieve this, but if you’re a new business owner, you may not know your options.
To help you establish the lay of the land, here are five kinds of insurance every new business owner should consider:
1. Workers’ Comp
The best way to avoid the risks associated with hiring employees is to get workers’ compensation insurance. This kind of insurance provides cover for workers in the event of sickness, injury, or death in the workplace. The best workers’ comp insurance for small business enterprises may include disability benefits.
All these unfortunate events can result in your company losing money, so you want to make sure you have safeguards in place. Even if you’re running something as simple as a nail salon, you need workers’ comp. Otherwise, repetitive strains, injuries, or fungal infections may leave you with medical bills or legal claims you can’t afford.
Sure, workers’ comp is mandatory in most states, but it also just makes sense. If you’re not up for court battles with your employees or having to pay for their medical bills, this one is a must.
2. Business Liability Insurance
Known also as general liability insurance, this is more of an umbrella type of coverage. It’ll help protect your business from claims resulting from its operations, products, and services.
Whether these are claims of property damage, bodily harm, or defamation, they’ll all be covered by your general liability insurance. Your insurer will cover everything from settlement fees to legal counsel.
3. Property Insurance
Property insurance for businesses is the key to safe and secure commercial possessions. Assets indicate how profitable your business is, as they help give insight into the financial position. They’re also helpful for generating revenue, allowing for day-to-day operations, and increasing the value of your business. That’s why you must insure your assets against theft, fire, and the elements.
4. Auto Insurance
If you use vehicles for any aspect of your business, auto insurance should be high on your list of priorities. Property and general liability insurance will only get you so far when it comes to your business vehicles.
You’ve got to obtain vehicle or auto insurance to secure full coverage for your company cars. God forbid one of your employees ever gets into a car crash. You want the peace that comes with knowing your team member will be covered by workers’ comp while the vehicle is repaired or replaced by your auto insurer.
5. Cyber Insurance
We’re living in an age where businesses are increasingly depending on IT infrastructure to compete and stay safe from cyber attacks. Companies of all sizes are targeted, with nearly half of the cyber attacks aimed at smaller enterprises.
Some never recover from cybersecurity incidents, data breaches, and ransomware attacks. Those with cyber insurance, however, are sure to bounce back strongly after an attack. That’s because cyber insurance can help repair damaged computer systems and recover compromised data, saving you untold amounts of money in the process.
The best way to make your business impervious to nasty surprises is by preparing for the worst. What are you waiting for? Get your risk management strategy in place by engaging an insurer to fortify your business against the unknown.