Starting a New Business Entrepreneurs face many unknowable risks when beginning their venture, such as property damage, employee injuries, and legal liabilities. Business insurance offers protection from these hazards at a reasonable cost, similar to other forms of insurance: clients pay a premium, which the insurer uses towards covering some or all losses they incur as part of an insurance policy premium contract.
Business insurance policies come in various shapes and forms; which one you need depends on your industry, location, staff size, and commercial assets. All businesses should at least carry general liability coverage as protection from claims alleging bodily injury and property damage due to the daily operations of your company.
Your business requires business interruption insurance to cover lost income and expenses if a disaster (like fire, flood, or building collapse ) forces it to temporarily close. You can purchase this coverage either as part of a BOP package or separately.
Based on your industry, errors and omissions (professional liability) insurance could also be essential. This coverage protects you against lawsuits alleging your services were either inadequately performed as promised or negligently performed; financial planners, lawyers, and healthcare providers typically carry this policy.
Cyber liability coverage should also not be ignored, particularly for small businesses that rely heavily on online services and may be susceptible to hacking and other security breaches. This insurance can provide vital protection from unexpected intrusion into electronic data or systems belonging to your company, making sure all electronic information stays safe from unauthorized access and breaches.
A Business Owner’s Policy (BOP) is an umbrella policy encompassing property, business interruption, and general liability coverage. This option can be beneficial for small- and mid-size businesses without complex insurance needs or multiple locations, but you should check back annually with your policy to make sure it still fits with the current needs of your company and that any unnecessary coverage is eliminated from it.
Although purchasing business insurance is an expense, it’s a necessary investment that protects against financial loss. To find the appropriate policies for your company, work with a licensed insurance agent who can explain all your available options and benefits, as well as help determine how much coverage is necessary at an economical price. A good agent should also keep in mind industry trends to recommend changing coverage as needed over time. For more information, contact one of Society’s insurance agents near you, who will tailor a plan tailored specifically to fit your company’s needs and budget.
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