Everything You Must Know About Insurance: Tips for New Business Owners
Business owners and startups need business insurance to protect their assets, their revenue stream, and their employees. It’s a fact of running a business that you’re going to need insurance. But how do you get it? If you’ve been thinking about getting started with your new company as an independent contractor for example, or just wanting to expand your freelance services business, then chances are you don’t have any existing clients yet. That means that your new company doesn’t yet have any revenue stream and isn’t generating any income. This article is here to help guide you through the ins and outs of getting the right type of business insurance for your new venture as well as tips on how to get it fast.
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According to a business insurance broker, policies of an insurance can include things like property and liability insurance that protects your business assets and income from damage and/or lawsuits. For example, let’s say that you’re opening a new nail salon. You’ll need equipment, furniture, and other items to operate your new business. And you’ll need to protect those assets if there is an accident or someone gets hurt while they’re at your new nail salon. Property insurance can help protect against damage to your nail salon and equipment due to accidents or vandalism.
Types of Business Insurance
There are many types of business insurance policies. Some of the most common types of business insurance include:
- Business Owners Policy – Also called an “OP” or “owners policy,” an “OP” is the most common type of business insurance. An “OP” will protect you and your business assets with a single policy that you file with an insurance company. OPs typically offer more coverage than the other types of business insurance mentioned below and are usually the most affordable.
- Certified Business Insurance – Certified business insurance policies provide coverage for specific businesses. For example, let’s say that you own an art gallery that sells antique furniture. You may want to get an insurance policy for your art gallery that has furniture coverage as part of the policy.
- Commercial Auto Insurance – A lot of new businesses have employees who drive vehicles to get to and from work or to operate the business. If an accident happens while one of your employees is driving a company vehicle, they may be able to file a claim with their commercial auto insurance.
- Business Owner’s Life Insurance – To protect your loved ones if you die while running your business, you may want to consider buying a term life insurance policy for your business. This will help ensure that your family and business are taken care of if you die unexpectedly in your 50’s, 60’s, or 70’s.
- Business Owner’s Health Insurance – If you’re the owner of a small business and you’re older than 55, you may want to consider getting health insurance for your business. This way, you can protect your health and your business even if you have a sudden illness.
- Business Owner’s Umbrella Policy – Business insurance policies that cover your business assets up to a set amount are called “umbrella policies.” Business owner’s umbrella policies usually cover more than a typical business owners policy and are usually more expensive.
When Should You Have Business Insurance?
The main reason that you’d want to get business insurance is because you’re a business owner. As explained by a reputable business insurance broker, a business owner is essentially an independent contractor who manages their own business instead of having a boss. As an independent contractor, you need to ensure that you have a way to protect yourself and your business should something bad happen. If you own your own business then there’s a very good chance that something bad will happen to your business. That’s why you need business insurance.