Insurance is important for any business. Not only can it protect your business short-term, but long-term as well. So, if you have officially decided to begin that start-up you have always dreamed of, don’t forget to look into one of the most important aspects of any business, insurance.
For many small businesses, this is likely something they oversee. However, it is incredibly important. It can cover various things, such as general liability, your property, your workers, and more. With a comprehensive policy, you won’t have to worry if something goes wrong.
While insurance is important for a small business, you may ask yourself where you even begin. Keep reading to learn more about important insurance to have as an entrepreneur.
Do You Need Insurance?
You may understand the importance of insurance but question if you really need it. For example, if you have been pondering the question, “Do I need business insurance?” Then the answer is likely yes. As an entrepreneur, you can benefit from the coverage offered by various insurance policies covering anything from your workers to your inventory and clients.
To put it in perspective, imagine you are on the job, and one of your workers gets injured. What will you do? Well, this is where insurance comes into play. With the right coverage, you don’t have to worry about covering workers’ compensation out of your own pocket; insurance will do it for you!
What Insurance Do You Need?
As you have seen, options for insurance coverage are endless. There are a variety of business insurance policies that you can choose from that could benefit your business. These can cover as much or as little as you want, although there are some crucial aspects to cover.
The insurance you should consider for your business as an entrepreneur includes general liability, worker’s compensation, business income, commercial auto, commercial property, data breach, and professional liability. But what does each of these cover?
As a business owner, you will need this type of insurance. This policy covers various things, such as bodily injury, property damage, and more. With general liability insurance, you have comprehensive coverage when it comes to your business functions, employees, and clients. This coverage can help cover you in a variety of instances.
If you run a business employing workers, you will want this insurance coverage. This coverage helps protect you and your employees if they suffer from illness or injury that happened on the job. In addition, you will have an easier time hiring quality employees with this type of coverage in place.
If you are ever stuck in a sticky situation where you cannot cover costs due to issues such as property damage, business income insurance can help you. Things happen; we get it. That is why business income insurance can be so beneficial. This coverage can cover tax returns, wages, rent, or more in an emergency, given your situation.
This type of insurance may not be for everyone, but it can certainly be beneficial. This insurance is a great option for you if you are a company that operates using some sort of motor vehicle. It helps cover the cost of any type of accident in a company-owned car, whether it is you or an employee driving.
This insurance covers the property you own as part of your business. It protects against any damage you may encounter, such as a fire or inclement weather. When these issues occur, many businesses suffer, causing them to lose money. This insurance will cover you if an incident occurs.
Now that so much of the business world has gone online, this is a type of insurance you should thoroughly consider investing in. It will help if your business has some form of security breach. In addition, it also helps if information gets lost or stolen and can cover the costs of alerting customers.
As a business, you want to appear as professional as possible. With professional liability insurance, this can happen. This coverage is mainly for any potential issues with your products and services, leaving your consumers protected.
What Insurance is Best for Entrepreneurs?
Now that you understand how many options you have when it comes to insurance coverage for your business as an entrepreneur, you should have a solid understanding of which insurance is ideal for you. For many, the best option is what is known as a business owner’s policy (BOP).
This insurance coverage includes a combined policy, typically combining business property and liability insurance into a single policy. This process helps cover almost anything your business may need.
Cost of Insurance for Entrepreneurs
Insurance is important for entrepreneurs, and there’s no doubt about that. However, when it comes to payments, often small businesses are looking to be as cost-effective as possible. The cost of your business when it comes to insurance will vary based on a couple of factors, including the kind of business you have and its size.
Small businesses often pay a few hundred to a couple of thousand dollars annually for all their insurance coverage. Here are the common factors that insurance companies look at when determining cost:
Get The Right Insurance For You
Having proper coverage to protect your business is essential to your long-term operation and survival. As an entrepreneur, you will want to invest in the right insurance to ensure your business is covered.
If you’re looking for additional resources to help you grow, consider utilizing all of the available options from Gig Worker Solutions and the Association for Gig Workers to meet your business needs.