Starting a business is complex and overwhelming all on its own, but then you have to think about finding the right insurance for it, which opens up a whole new door of complicated. There is so much to consider, from health coverage to liability to auto insurance. As you are figuring out what your small business needs to ensure it is covered in the event of a disaster, here are four things to keep in mind:
1. Don't Overlook the Importance of a Good BOP.
A BOP, aka a business owners' policy, is one of the most important things you can have when it comes to covering yourself financially as a small business. As a general rule, most insurance providers will have this type of coverage and they will generally include a wide variety of coverage options that may include an assortment of general liability, liability for employees, vehicle coverage and more – all rolled into a single, comprehensive package.
2. Don't Think You Can Skip Coverage Because You're a Home-Based Business.
Many small businesses that operate out of their home think that insurance doesn't apply to them. However, this couldn't be further from the truth. Anything can happen at any time and to anyone. For example, if you run and operate an Etsy or an eBay store out of a shed or garage, and your supplies and products are kept there, what would happen if it burned down and you lost everything? Your homeowners' policy will not cover it, but a business insurance policy will.
3. Make Sure to Assess Your Risks.
To ensure that you choose a coverage that is appropriate for you and your business, regardless of the type of coverage that you're looking to buy into, you need to know what your risks are. For example, if you mainly sell physical products, then your primary focus for coverage will likely be on products liability. However, if your company conducts business primarily online, then you likely want to look for some coverage that will protect you against online activities, such as cyber attacks.
4. Don't Forget to Cover Your Employees.
While not all small businesses can afford to have employees, some do (or will in the future). So, if you have employees, you need to make sure that you have insurance coverage for them. The requirements vary from state to state when it comes to workers' compensation, and some states actually require that you have this type of coverage. In states that do not require, you may want to consider having it anyway.
When you are ready to purchase commercial insurance, reach out to an independent agent who can provide you information and quotes on a variety of policies from different providers.