Many people spend months or years planning their new businesses, and then invest almost literally everything they have into getting them off the ground. Therefore, it makes sense to protect your new business in every way possible.
There are a number of different choices out there, in terms of providers and coverage amount. A good insurance broker, like Next Insurance, can help you sort through these different options and make the right choice.
Errors and Omissions
Professional liability insurance guards against negligence and failure-to-perform claims. If your business is in the service industry, you definitely need significant E&O coverage. To determine your need, take an honest look at your risk and the amount of money you can afford to lose on a claim. E&O insurance is also a must for many investors. They want to know their investment is protected. If you need to raise capital in this way, you’ll need this type of insurance.
Somewhat similarly, many landlords will not rent to businesses without property insurance. These policies cover fire, theft, and other kinds of unintentional losses. Keep in mind, however, that these policies are usually limited. Many do not cover things like floods and hurricanes, especially in areas prone to these events.
Business Interruption Insurance
Property insurance covers physical losses due to natural and unnatural disasters. However, these policies do not cover the resulting business interruption. For that, you need business interruption insurance. BII policies are essential. Many times, the interruption as a result of a disaster is much worse than the physical damage.
Most states require insurance against workplace accidents. Most states also have very intricate rules regarding the number of employees, coverage amounts, and other such matters. As in other areas, just one claim can be devastating. For example, slip-and-fall injuries cost about $70 billion every year.
Typically, this insurance is a rider as opposed to a separate policy. Many homeowners’ policies do not cover commercial losses. For example, if you run a small catering business out of your kitchen and a fire occurs,the homeowners’ policy may not cover the loss.
Business Vehicle Insurance
The same thing applies to auto insurance. Most policies do not cover commercial losses. Anyone who uses a vehicle for any commercial purpose needs business vehicle insurance. That could be a food delivery service, an Uber driver, or someone who travels to offsite meetings.
Cyber Liability Insurance
Hackers and cyber-criminals become more sophisticated every day. The potential losses get bigger every day as well. There are both direct costs, such as fines and lawsuit settlement costs, and indirect costs, such as loss of customer goodwill. Cyber liability insurance covers most of these losses and also provides peace of mind.
You have worked too hard and too long to see your dreams go up in smoke. But that’s probably what will happen if you must deal with an uninsured liability claim. So, make the right choice and reach out to an insurance provider today.