Insurance Tips For New Business Owners

9 June 2015
 Categories: , Blog

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If you are starting a business and you're taking a huge financial risk to get the business started, there are a few different things you need to know about commercial insurance. You will want to talk with a commercial insurance professional about all of the coverage that you could potentially need, so you don't end up having a mistake or problem that drains your business finances.

Here are a few things you want to ask about, and you may want to have a lawyer look at your insurance policy before you activate the coverage.

Unemployment Insurance

 You never know when something unexpected can happen and you end up closing your business and without a job. If this happens to you, you want to make sure that you have unemployment insurance so you can get buy until you get another job, or until you are able to get your business up and going again. This could be caused by an equipment problem, an injury that prevents you from working and more.

BOP Insurance

A business owner policy is going to cover the business owner for things like interruption issues, property coverage, crime, their vehicles and more. This insurance will often bundle all of the types of coverage the owner is going to need into one package to conserve money. The type of business you have, the location of your business and the type of business assets you own will determine what types of coverage you need in this bundle.

Errors and Omissions Insurance

This is liability insurance that is going to cover the costs from claims made by customers, clients or companies about negligent or unsatisfactory work. You will need this coverage in the amount of the largest project values you may have. An insurance professional can help you determine what the right amount is.

Workers Compensation Insurance

Are you going to have employees working for you? It doesn't matter if you run a business out of an office or a heavy duty construction company, people can get hurt on the job. If this happens, they still want their wages. The insurance is going to help cover the cost since you have to pay for someone else to replace them.

Every type of business is going to have specific business insurance needs that need to be addressed before the company opens doors and starts working on jobs, or accepting money from customers. Find an insurance agent (such as one from Paris V Mastroddi, Inc) and start getting quotes on potential projects.