The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
A pair of glasses on a health insurance policy claim form. This photograph is taken with a cool blue light and a shallow depth of field. The reading glasses rest on the numerous forms one must fill out for health insurance. “Insurance Policy” reads clear and big across the document.
The world of business ownership comes with a host of legal and financial responsibilities. One important consideration is how to protect yourself, your clients, employees, and your property. Without the right coverage in place, you’ll leave yourself open to financial risk, fines, lawsuits, and with no recourse should things go wrong. For this reason, you must understand what is required for different types of businesses in terms of insurance coverage so that you can create appropriate policy options for your new venture. Below are four types of coverage you’ll need.
Professional Liability Insurance
Customers and employees can cause financial harm regardless of what kind of business you’re running. As a merchant of goods and services, you’ll want to protect your own personal assets, as well as the money that is paid to you by your customers. Professional liability insurance is coverage to protect your business against lawsuits related to injuries, damages, and misconduct.
Public liability insurance protects your business from the possibility of being sued if something goes wrong. A company with only $1,000 in assets is more likely to be liable for a public liability claim than one with $1 million. But remember that every dollar you spend on protection adds up over time: Even with today’s ever-increasing costs and shrinking margins, you need to buy enough coverage to protect your business against the highest value claim.
Worker’s Compensation Coverage
Even if you don’t have employees, the chances are good that you have employees at one point. If you do, you’ll want to protect your business from employee-related lawsuits by having worker’s compensation insurance. This policy provides compensation for employees who are hurt on the job and do not pursue financial benefits outside of the business.
Property Insurance Coverage
If you own a business, you likely have a considerable investment in real estate, equipment, and other tangible property. You’ll want to protect your property with a comprehensive and specialized policy that fits the needs of your particular situation. This type includes business interruption, property coverage, and inland marine, protecting against physical damage, fire, and theft.
You must review your current insurance coverage when planning for the future. You may need to add or remove certain aspects to protect yourself and your new venture adequately. By taking the time to seek out the right coverage and shop around for the best rates, you can rest assured that your business is prepared for a successful future.
