What kind of insurance do you need for your business?
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As you begin to build your business, it’s important that you begin to limit your personal liability and risks; the way you do that is through a professional insurance policy.
You may be asking yourself if you have to get insurance, or if you can put it off until a later date. While insurance is not legally required to run a business it is strongly encouraged for every type of business, even online creative ones.
There are several options when it comes to insurance, we will cover some of them here.
Likely the most common coverage for businesses is Business Liability. Business Liability, also known as Professional Liability, helps cover the risks of any liability claims made against your business.
Liability claims can be costly, it’s estimated that there was $17.4M in judgments made against bloggers alone by the end of 2014. Do not assume that you or your business would be immune from such claims. Imagine discovering that your business name actually is trademarked, or that photo you used from a free stock site was actually stolen from the original artist. If you have a physical location for your business, then having proper coverage is even more important as you need to protect yourself against any liability claims related to physical injuries on your property. For example, if someone were to trip and fall, your business liability insurance would help cover the costs of that claim.
Business Property coverage helps cover the physical location of your business, even if it’s a home office. This includes business assets such as computers, furniture, tools, and even documents and software. In the event that there was some kind of disaster or vandalism at your property, Business Property insurance would help cover the costs of damage or the need to replace assets.
Business Income Insurance helps replace lost income in the event that your business can’t operate due to a covered loss, such as a fire. This will ensure that you’re still able to cover the bills and payroll while any repairs are being made.
Workers Compensation helps to support any employees who are unable to work because of a work-related injury or illness. Workers compensation is important if you plan to have any W2 employees, even if they work remotely. For example, if one of your employees begins complaining of joint pain and they believe it’s related to repetitive motion from typing, their doctor could easily attribute it as a work-related injury, at which point you would need proper coverage to ensure the employee is taken care of and your business is protected.
Where to find Coverage
You’ll want to shop around and compare prices for insurance to ensure you’re getting the best coverage at the best rate, particularly in the early days of your business when you’re not generating as much revenue. Below are some commonly used options for business insurance:
Research your specific industry and business, or speak to an agent to determine if there is any additional coverage you should consider, such as business auto insurance or Data Breach insurance.
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