One of the very first things to do when starting a business is getting the right kind of insurance. At the very least, it’s essential to get basic business liability insurance, although you might want to take the time to add coverage for risks that are specifically related to your industry and type of business.
Obviously, there is no “one-size-fits-all” insurance policy – not just for businesses, but for anything that needs to be insured (vehicles, houses, medical, etc…). A marketing agency that operates primarily online, for instance, will not need the exact same types of coverage as a construction company or brick and mortar facility.
The number of employees (if you have any) also plays a role in the business insurance you get. A BOP (Business Owners Policy) only covers general liability, which protects your business against all liabilities like property and product related claims, customer injury, etc… If you want to protect your employees, you’ll need a workers’ compensation policy.
The good thing about owning a business these days is that the internet has paved way for being able to obtain quotes in a matter of minutes. The insurance companies themselves usually have custom-made policies for each and every industry. For instance, if you’re involved in the restaurant business, just look for an insurance policy that is made for restaurant owners.
Business Liability Insurance With No Employees
If you’re brand new and just starting a small business and don’t really have any employees yet, then the most basic business liability insurance coverage might be okay for the time being. But keep in mind that your insurance needs will grow as your business grows. While BOP coverage does include both property and liability protection, contractors often get either it or a portion of it as standalone coverage. Even if you consider yourself to be a contractor and don’t own any property of your own, you can still benefit from some basic business insurance without having to invest fully in a BOP.
Depending on where you live, failing to carry some type of general liability insurance might not actually be against the law. However, it is still essential to have because not having it could result in you being expected to pay for all expenses related to any kind of claim against you and/or your company.
In this day and age, cyber security is something that should always be taken seriously, as just about every industry has some sort of connection with the internet, such as keeping a digital database of clients / inventory / equipment / etc. This means that you might want to consider having protection against cyber attacks and potential breaches included in your business insurance plan.
The best way to get started with business liability insurance is to request a free quote from Hiscox Insurance. This company covers everything, from general liability to industry-specific coverage, as well as insurance for contractors.