Business Insurance Tips for Small Company Startups
Updated: May 2
When starting a small company, it is important to look into the types of business insurance that will be required to help you to mitigate risk and protect the financial future of your organization, no matter its size.
There are certain types that will be very useful for making sure that you will be covered against a number of different potential circumstances, though there are also forms of coverage that you may not require. As you consider the various forms of protection available to you, use the following tips to help to guide you. If you are uncertain, speak with an experienced business insurance agent for additional advice.
The first form of coverage that you’ll want to consider is commercial general liability protection. This is the most important type of policy that your small business will need and it should be acquired for virtually any startup, no matter its nature, industry, or size. This is the coverage that will protect both you as an individual and your company against claims of property damage or bodily injury. If you cause an accident where someone gets hurt or their belongings or damaged, this is the type of policy that will protect you. That coverage offers a wide range of different types of protection and also provides defense against libel and slander, as well as incidents where someone slips and falls on your property or as a result of something you’ve done.
There are exceptions to its coverage, including assault & battery, workers’ compensation, business auto, commercial property, liquor liability, and professional liability. For additional coverage, you might want to think about an umbrella policy, as this will bring workers’ compensation and auto liability into your protection mix.
As you decide whether or not you need umbrella coverage and precisely how much general liability protection you need, you need to calculate how much you have to lose should an unforeseen circumstance occur.
Business insurance should be seen as a central part of your company’s financial plan. By making sure that you have adequate business insurance for your organization, you are taking vital steps to protect yourself and the very existence of your company against a wide array of different kinds of claims.