Deciding to leave your employer and strike out as an entrepreneur is a huge deal. You have the power to grow your brand and your income as you take your career to the next level. While the next few months are sure to be exciting, there will also be some exhausting and frustrating moments. You also might end up taking some risks that you aren’t sure about.
Fortunately, there is one aspect of your workplace where you don’t need to take a risk: your business insurance. Follow this guide to understand better the types of insurance you need for your small business.
Professional liability insurance also called professional indemnity insurance, protects your company if you or one of your employees makes an error or omits information that can harm your clients. This type of insurance is typically meant for small business owners that specialize in certain fields and advise or consult with clients. If you have this type of insurance coverage, your company would not be liable if you make a mistake and accidentally omit something that harms a customer.
Even the most knowledgeable and careful business professionals can make mistakes sometimes, and this general liability insurance can protect you.
One form of business insurance that is increasing in popularity is cyber liability insurance, which protects business owners from liability in the event of cyber-attacks and other data breaches. For example, if a hacker steals your customer credit card information or exposes private knowledge to the public, this insurance can keep you covered.
Cyber insurance is beneficial for a business owner that works in a home office. It might not have the dedicated IT support he or she needs to prevent online attacks.
Are you operating a delivery service or running a business where you will use your car or truck to meet with clients? If so, consider purchasing commercial auto insurance, which will protect any fleet vehicle you use, even if it is in your own car. The concept of investing in this form of insurance is the same as if you had a commercial building. You want to protect your assets as best as you can from general liability, endless litigation, and expensive legal fees. Any large asset you purchase, from your car to your equipment, needs insurance coverage, both if a customer files a suit against you or if a natural disaster renders the items irreparable.
Another type of insurance a small business could benefit from is business interruption insurance. This can be found in your general liability section and covers any costs and lost income if your business has to close its doors unexpectedly. For example, if a hurricane comes through your state, business interruption insurance may be able to compensate you for the days you were closed.
Now that you are your own boss, you need to step in and find insurance policies that meet your needs. Historically, employers provide benefits to works like health insurance and life insurance. However, you don’t have this benefit (or easy access to plans) now that you are self-employed. Within the first few months of starting your business, look for a life insurance plan that you can invest in so your family is covered financially if something happens to you.
Many business insurance policies will cover the factors listed in this article; however, it is important to carefully read over your plans to understand what is covered and its extent. You don’t want to encounter a problem only to realize you lack the coverage you thought you had. With the right small business insurance coverage, your business is protected no matter what happens.