Small Business Insurance
When starting a business, it is important to have all your paperwork in order. This not only includes a business plan, permits, and corporation documents but more importantly Small Business Insurance. There are dozens of different types of business insurances. It is necessary to have basic business insurance no matter what type of business you are running.
As your company begins to launch, insurance can seem like an unnecessary expense. However, in most states business insurance is required. Here are some of the most common types of business insurances that may be required in your state:
General liability Insurance
Depending on what type of business you run, you will need to purchase both liability and property insurance. General liability insurance protects your company from damages that may be cause bodily or property damages to a third party. This type of insurance also covers any liability caused by you and your employees.
Worker's Compensation
Worker's Compensation insurance is available to companies that may be more prone to injuries. This type of insurance serves as a wage replacement. It also will cover any medical services needed. In most states, you are required to have this type of insurance if you have W-2 employees.
Commercial Property Insurance
Property insurance will cover loss and damage caused to your commercial property. Some of the events that are covered include fire, smoke, wind, and vandalism. Depending on the insurance company and state, commercial property insurance can also include computers, and lost income. Most states will require a business to be bonded and have this type of insurance.
Home-Based Business Insurance
Most business owners do not know that homeowner's insurance does not cover home-based business losses. You can add riders to your policy so that your business is covered for any losses. As riders will not cover everything, you may have to purchase additional policies to cover risks that can be covered under liability insurance. Some states do not require this type of insurance but it can still be helpful.
Depending on what your business does, you more than likely will not need all the insurances that are listed above. The requirement for business insurance varies greatly but should be a part of your start-up cost. Like any other insurance product, it is better to have it and not need it. Most insurance companies do offer discounts when multiple policies are purchased. In some cases, you may be able to combine business policies with life insurance policies. This is another type of insurance that is important to have especially if you have a partnership. You can talk more with your agent about the recommended policy amount to have.
If you have questions regarding business insurance, let Blue Sky Coverage get you the coverage you need. Call us today to get business insurance for your business.
