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Insurance: What You Need To Know Before Starting a Business

Insurance: What You Need To Know Before Starting a Business

Photo by Andrea Piacquadio from Pexels

You may have had a great business idea and are well on your way to establishing your business. Before you start, understanding insurance is very important. The current global pandemic has meant that insurance is needed more than ever, although it depends on the type of insurance you have. Setting up a business will require insurance so understanding the different types will help you insure yourself against certain risks. Below are some of the insurance types you need to know about.

Professional liability

One of the well-known insurance covers, professional liability insurance, covers your business against negligence due to your business’s performance. It rdoes depend on the type of your business, therefore it’s important to shop around and obtain a policy that fits the specific needs of your business. Having a tailored policy will ensure you have peace of mind. 

Employees’ insurance

If you hire employees it’s important to take out insurance that will cover medical treatment should they get injured on the job. This type of cover can also cover disability or even death if the employee was injured or died while working for you. It is good practice to carry out risk assessments for all employees regularly to prevent injury. 

Product liability

Should your business be making any type of product from food to blankets and everything in between, it is important to have product liability insurance. If your product is not safe, then this insurance will cover you for any lawsuit that may follow.  

Buildings and contents insurance

If you buy your office building or lease it, you will still need buildings insurance. Whether a business owns or leases its space, property insurance is a must. As well as covering the building you will need insurance to cover your equipment. This is especially needed if you are operating machinery or equipment that was expensive to purchase. Your insurance company may require you to list all items that you require cover for to ensure they give you the right cover. 

Working from home insurance

Just because you are working from home, doesn’t mean you forget about insurance. You will have to contact your home insurer and talk over what options you have for ensuring your business while working there. This may require an additional premium or a new policy. It is important to ensure you let your home insurer know you are working from home.  

Vehicle insurance

If you use a vehicle for your business then it’s important to get cover for when you are driving. There are different options from fully comprehensive to third party insurance. There may be some exceptions to vehicle insurance such as which you may require additional cover. For example, you may need a negligent homicide attorney which may not be covered so check your insurance details carefully.

Interruption insurance

This type of insurance comes into play if there has been a major disaster such as a hurricane or flood. If anything has interrupted your business you can make a claim. However, you will want to ensure you are covered for every eventuality which means talking with an insurance company to tailor-make a policy that fits your specific needs.

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