Starting a new business is an exciting time. You're likely already making projections about the future of your business. However, there are important steps you should take to protect your business. Purchasing the right business insurance coverage is an important first step. Here is a look at some key insurance policies to focus on.
A BOP is an efficient way for you to find coverage. The policy combines liability and property insurance into one policy. A BOP covers your business in potential emergencies. BOP offers a safety net if you want to avoid a situation where your business is vulnerable due to theft, natural disaster damage, or a bodily injury lawsuit. You can amend the policy based on the unique needs of your business. It's recommended that you add loss of business income to the policy to protect you if your business needs extensive repairs in the aftermath of a natural disaster or fire.
Professional liability insurance covers your business if you have been accused of negligence or malpractice while providing service. Consider the benefits of adding errors and omissions insurance. The policy helps cover your legal costs while you handle the allegations. This type of coverage is recommended if you work in the medical, legal, accounting, consulting, and real estate industries. However, beware that professional liability insurance does not protect your business against defamation of character allegations or cyber threats. You'll need to purchase a separate policy.
Commercial property insurance covers any damages to your place of operations. All of the items inside the building, such as your tools, supplies, and equipment, are covered if anything happens to them. Commercial property insurance can potentially keep you from going out of business if an explosion or natural disaster damages your property. You can also add extra coverage if your business needs to evolve over time.
Your employees are an important part of the overall success of your business. Worker's compensation helps you avoid potential litigation if one of your employees is injured on the job. Purchasing worker's compensation can also help you avoid potential fines. Businesses must purchase workers' compensation to operate business legally in most states. Worker's compensation covers your employee's medical treatment and rehabilitation and their lost wages while they are unable to work.
If you use a fleet of vehicles to help complete tasks, commercial auto insurance will protect you if something goes wrong. The policy covers any damage to vehicles that are owned or leased by your business. Liability coverage protects your vehicles if they accidentally injure someone or cause property damage.
Most small businesses operate on a tight budget initially until they can increase their revenue. Finding the right business insurance coverage is extremely important if your business falls into this category. Without the necessary protection, one financial emergency could cause your entire business to fold. The experts here at CF&P Insurance Brokers will assist you with any questions related to your insurance policy. Contact us today to get a personalized quote.
