Have you just started your own business? Congratulations!
Before you get started, you have a few housekeeping things to take care of. One of those is business insurance.
Unfortunately, most businesses are underinsured. An estimated 75% of companies in the United States are underinsured by at least 40%.
Luckily, you probably won’t need to have every type of insurance there is. But there are a few types of business insurance that you need to know about.
Below are the five most common types of insurance you’ll need for your business.
1. Workers’ Compensation Insurance
If you hire workers, it’s hard to get around without workers’ compensation insurance. It’s required by law in many states.
Even if you don’t work in a high-risk industry, accidents can still happen in the workplace. Workers’ compensation will protect you from this. It will pay for any medical treatment your workers need after getting hurt.
2. Product Liability Insurance
It doesn’t matter how much R&D you do for your products. Accidents can still happen. Because of this, you need to buy product liability insurance.
Your total cost will depend on the riskiness of your product. It will cover you in the case of mishaps with your customers.
3. Business Interruption Insurance
Accidents happen, and you can’t always prepare for them. If you are down for any amount of time, it could cost your business money. This can be the result of lack of internet access, inability to make phone calls, or the inability to work with equipment.
Business interruption insurance has you covered for cases like these. Your insurance policy will cover your losses when your business can’t produce.
4. Property Insurance
If you own your business property, you need to be property insurance on it like a residential property. You don’t want to be out of money because of unexpected damages that happen.
Even if you don’t own the space, you may still need insurance for when you rent. While you may not own the property, you do own the equipment and products inside of it.
If you need someone to call for property insurance, you can find the State Farm phone number to get a quote.
5. Professional Liability Insurance
If someone relies on you for service, then you may be on the line for professional liability. If someone brings this claims against you, it means they believe you failed to perform your duty and harm came as a result.
Professional liability won’t stop these claims from happening. It will, however, cover you against any losses from it.
These policies will need to be customized for your business type. There’s no one size fits all solution.
Make Sure You Know These Types of Business Insurance
There are many types of business insurance out there, but the ones covered in this post are the ones you’ll most likely see in practice. Make sure you keep these in mind for the future in case you need a policy for your business.
Once you get your insurance needs out of the way, it’s time to get started building your business. Head over to our article section to learn our latest tips.