Insurance Coverage You’ll Need When Starting a Small Business

Starting a Business

Starting a small business can be an incredibly rewarding experience, but it’s important to remember that there are risks associated with any new venture. That’s why it’s critical to have the proper insurance coverage before launching your business. A business insurance broker can help you determine which types of coverage are right for your business.

Property Insurance

Property insurance covers your business premises and any equipment or inventory stored there. If you have customers who visit your office or store, property insurance can also help protect them from injuries on your property. Property insurance can help cover the cost of repairs or replacement if your business suffers damage due to a fire, theft, or other covered events. If you lease your business premises, your landlord may require you to carry property insurance. Property insurance does not cover flood damage, so if you’re located in an area prone to floods, you may need to purchase a separate flood insurance policy.



Product Liability Insurance

Suppose you manufacture, distribute, or sell products. In that case, you need product liability insurance to protect your business from lawsuits that may arise if a customer is injured by one of your products. Product liability insurance can help cover the cost of legal defense and any damages the law may award you if found liable for an injury. Product liability insurance is particularly important for businesses that sell products that could cause serious injuries, such as food or pharmaceuticals. If you have product liability insurance, check your policy to see what types of products are covered. Some policies exclude coverage for certain products, such as cosmetics or medical devices.

Commercial Auto Insurance

If your business uses vehicles, you need commercial auto insurance to protect your business from the costs of accidents and vehicle damage. It can also help pay for medical expenses if you or your employees are injured in an accident. Commercial auto insurance covers vehicles such as cars, trucks, vans, and SUVs. If you use specialty vehicles such as snow plows for dump trucks, you may need a separate policy specifically for those vehicles.

No matter what type of small business you have, it’s important to ensure you’re properly insured. An experienced business insurance broker can help you assess risks and choose the right coverage for your particular needs.



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