Starting Up a New Business? Types of Insurance Policies You Should Have
It takes a lot of hard work to start up a new business, but it is important that you do everything correctly before you even open your doors. For example, you should make sure you have insurance. Even though insurance may be expensive, it is something you need to have. There are many different types of insurance policies, and things can become very confusing. Below is an explanation of a few types of insurance that will help you have a good understanding of the matter.
Property Insurance
If your business is in a commercial building, you need to have property insurance. This type of insurance covers your building with incidents due to vandalism, fire, theft, and damage due to the weather. This insurance will also cover any equipment inside your business, such computers and other electrical equipment as well as all of your office equipment.
If you have a home-based business, you can still purchase an insurance policy similar to this type of insurance. The company may have riders you can get that will help, but they will not cover everything the commercial insurance covers.
Worker's Compensation Insurance
If you are planning to or already have hired employees, you definitely need to have worker's compensation insurance. In many states this is a requirement, and each state has their own requirements. It is very important that you know what your state laws are so you will abide by them. This insurance coverage would cover expenses if an employee is injured on your property. The cost of the worker's compensation depends on the type of business you have. For example, if you have a roofing business, you have a greater risk of employees getting hurt than someone that has a computer business.
General Liability Insurance
General-liability insurance protects you and your business if anyone on your property has an accident that results in injury and sues you. If this happens, and you do not have insurance, your company could go bankrupt if the person was injured very badly. You would have to pay for their medical bills, lost time from work, and maybe even psychological problems. The insurance would cover all of these expenses, and it would also cover legal costs if someone sues your company.
Talk with an insurance company such as Insurance Unlimited of Missoula that offers business insurance to get more information about these policies. They can also go over other policies they have that you may need for your business and answer any questions that you may have.