Despite how in-depth your market research is as an entrepreneur, there are certain circumstances that you cannot predict. These occurrences can cause friction in the expansion of your business or the proliferation of your business model.
To protect your new business from the many risks that it will face being operational, it is expedient that you set up some insurance plans. These insurance options can be the bedrock your business will leverage should there be a turn of events.
This article will delve into 6 primary types of insurance your new business will need to be protected.
1. Property insurance
For a new business, the acquisition of work equipment and workspace renting is what gulps most of the invested capital. Suffice it to say that should there be any damage to these properties, it can set the business back a lot if not collapse it.
For instance, if your business was in a place like Edmonton, to forestall this dire consequence, contact a Edmonton insurance broker and get property insurance as one of the top insurance plans for your business.
Usually, property insurance covers properties like buildings, furniture, inventory, and equipment lost in a theft or a fire. Loss caused by massive natural disasters is mostly not covered by this insurance type.
2. Product liability insurance
Depending on the kind of business you run, you might need product liability insurance. If your business is not a service-centred one, and it involves the manufacture of products, product liability insurance is essential.
Batch recalls are common cases among businesses that manufacture products. This could be due to some damage caused by the product or safety concerns.
This can often lead to legal battles that take up a lot of business funds. Insurance coverage against such events or particular products can help save a business from bankruptcy.
3. Professional liability insurance
In delivering your business objectives, there might be some errors and omissions (E & O). Professional liability insurance also known as errors and omissions insurance protects your business against negligence claims should any harm be encountered due to the absence or lack of performance.
This protection is peculiar to the industry your business operates in and the details should be covered in the fine print of your business policy.
4. Vehicle insurance
Auto accidents are not planned but adequate measures like getting vehicle insurance should be put in place to ensure that company vehicles are insured. This protects your business from any damage or liability that may be caused by the vehicles, either to other people’s property, a person, or the vehicle itself.
5. Workers’ compensation insurance
As a new business, you may not be disposed to run all aspects of its operation yourself. This necessitates the hiring of employees. This makes this personnel your business’ responsibility.
Workers’ compensation insurance should cover the medical treatment of work-related injuries for an employee. Death benefits that go to the family of the employee should also be included in the policy of this insurance plan should such an employee die on duty.
6. Business interruption insurance
Unlike property liability insurance, a business interruption insurance policy covers losses that come to your business due to disasters or any occurrence that hinders or interrupts the operation of your business.
Final words
A suitable insurance plan can buffer a business, especially a new one from bankruptcy or collapse. The key is in finding the right plan for your kind of business and industry. To do this, it is advisable to seek out the counsel of experienced insurance brokers who will guide you on the best plans to go for.