From the moment you launch a business, there are certain risks that you will be exposed to. Before you go through the hiring process, your business is at risk, making it more critical than ever to have the right insurance in place. A catastrophic event or a lawsuit could be all it takes to wipe out your business before it’s even got off the ground. If you aren’t sure which route to take, here are four types of insurance policies that you need to protect your small business.
Professional Liability Insurance
Otherwise known as E&O (errors and omissions), professional liability insurance is designed to protect you and your small business against negligence claims. If you are taking out professional liability insurance, there is no one size fits all policy, meaning that each company will have its own set of concerns. You can take out small business insurance from providers like The Hartford. The company specializes in small business insurance, as well as homeowner’s insurance, car insurance, and renter’s insurance.
Property Insurance
If you own or lease an office or similar to run your business, taking out property insurance is crucial. This insurance will cover you for your equipment, furniture, inventory, and signage. If you find yourself in the event of a fire, theft, or storm, property insurance can take the weight off your shoulders, knowing that you are covered. Unfortunately, however, mass-destruction events such as an earthquake or flood don’t tend to be covered under typical property insurance policies. If you live in an area that is prone to these kinds of weather conditions, it’s best to contact your insurer to find a separate policy.
Workers’ Compensation Insurance
Once you have employed the first person in your business, it’s important that you add worker’s compensation insurance to your policy. Regardless of whether your employees are performing in a low-risk work environment, slip and fall accidents can and do occur in the most unlikely places, so it’s vital that you take out workers’ compensation insurance to protect you and your business. As a small business owner, caring for your employees’ welfare is essential.
Product Liability Insurance
If your business creates products and goods to sell to consumers, it’s vital that you take out product liability insurance. No matter how many precautionary measures you have in place to keep your products safe, it only takes one lawsuit from a customer that can have devastating consequences for your business. We all understand the importance of customer service, so to keep your audience happy with your products, having product liability insurance in place will keep you covered in the event of a lawsuit.
When setting up a small business, there is a wide range of insurance types that you need to be aware of, helping to protect you against any dangers and lawsuits that your business could face. To ensure your operation is low-risk, all the insurance types above can add an extra layer of protection to your company.
