Small Business Insurance: What Do You Need?
Updated: Dec 6, 2021
Most people dread calling their car or home insurance provider know that the renewal of their policy would mean higher costs. When you are just starting out in business, calling insurance companies for a quote can be quite a daunting task – but it doesn’t have to be. Navigating through the complicated realm of business insurance can be quite scary, especially for beginners, but with the help of insurance advisors, you will learn more about the policies offered and the coverage required for your type of business.
Armed with the most basic of information about business insurance, you are confident in making wise choices when it comes to insurance coverage for your business investment. Does this mean you have to buy the most comprehensive of them all? In some cases, you may have to, but it all depends on the type of business and industry you are in.
Is there such a thing as compulsory insurance? When you start your business, the government may require you to purchase the most basic of the policies offered to business owners, with no exceptions. However, it is imperative that you ask the coverage needed for a small business like yours. This is to ensure that you can comply the essential requirement and avoid penalties in the long run. More than that, knowing the requirements for insurance coverage for your business helps you avoid jumping into policies that you don’t need and end up paying more than you should.
If your business requires you to employ personnel, then your policy should include worker’s compensation insurance. If the worker gets injured while at work, the law requires you to assist and this is the kind of insurance coverage that will help you provide that. The company doesn’t have to shell out a lot of money to pay for the employee that has not rendered work. Apart from that, this is the type of coverage that you will need to cover the medical expenses that the employee may need to be able to recover.
If your start-up company also owns a car used to deliver supplies or pick-up orders, then you will also need to purchase car insurance. This will cover the claims that may be made against you by a third party. Such type of coverage will genuinely save the company from potential losses. Be sure to check with a trusted insurance advisor upon the registration of the company vehicle.
It can be quite tricky to pick the insurance coverage to buy for your start-up company, and it would help to talk to the experts. It is wise to speak with an insurance advisor before you make any decision to purchase.