5 Insurance Coverage Options for New Businesses

A startup is a high-risk venture. A small business owner should never assume that their business is a sure bet and that risks can be ignored. They need insurance coverage in different business areas to ensure their business survives in case of any mishaps.

Choosing the correct policy can be overwhelming with so many options available today. When it comes to insurance, not all policies are created equal. And for a new business, you certainly need to be careful about which policy to get. This article will explore 5 basic coverage options new businesses should consider before making an insurance purchase.

Top 5 Insurance Policies a New Business Should Get:

Professional Liability Insurance: This coverage protects the business owner against legal costs arising due to lawsuits filed against your business. In case of litigation, a professional may be held liable for damages caused to other parties due to an error, accident, or injury. Every small business must have this type of insurance because it will protect their business operations and assets. Businesses in the medical, legal, accounting, real estate, and consultancy industry should consider this one.Property Insurance: This is also called “General Liability” insurance in some businesses, as it protects the physical structure/property of a business. The risk of an employee or customer damaging or destroying your company’s property over time will be protected. It also protects the property against damage that is not caused by an act of the business.Business Owner’s Policy: A BOP is an insurance policy that provides additional coverage to business owners against risks that are not covered by any other policy. It includes coverage for personal liability, commercial property, and business income. It is a comprehensive policy that provides protection to the business owner for their personal assets and assets of their business from natural disasters, fires, theft and bodily injuries to employees. Worker’s Compensation Insurance: This insurance covers employees while working in your business and for the injuries that occur during their work hours. If an employee suffers from an injury due to negligence or misconduct of your business, this insurance will cover the medical expenses and lost income. You can have this insurance as an employee benefits package. Business Auto Coverage: This policy covers the automobiles that are used by the business owner and his or her employees. This policy protects the owner in case of a car accident or theft. It also offers protection for people who ride on your business’ vehicles and provide transportation. It typically pays for accidents, bodily injuries, vandalism, theft or damage to property due to your vehicles.