If you are planning to start a business, making sure you have the right types of business insurance can be an important part of ensuring your new business is adequately protected. Having this protection is especially important for new businesses since even a single lawsuit could be enough to put a new company out of business. Continue reading to learn more about three of the different types of business insurance that you may need to ensure your new company has the protection it needs.
#1: Commercial Property Insurance
Whether you are planning to buy or lease commercial space for your new business, you will want to consider purchasing a commercial property insurance policy. This is because this type of business insurance provides protection both for damage to the property where your business is housed and for damage to any items you have stored inside this property. For example, if there is damage to your office equipment as a result of a break-in, your property insurance will help to cover the cost of repairing or replacing this equipment.
#2: Commercial Liability Insurance
Another type of business insurance that is very important for you to consider purchasing is commercial liability insurance. Liability insurance protects your business if a customer or vendor is ever injured on your property or by one of your products. In this situation, your liability insurance will cover any medical bills or judgments that result from these injuries. Since even a single lawsuit can have the ability to bankrupt a small business, it is extremely important to ensure you are protected by a liability policy before you open for business. When purchasing this type of business insurance, you will want to check with an insurance agent regarding local laws. The reason for this is that some jurisdictions require all business owners to carry liability insurance. If you are required by law to purchase this type of business insurance, you will also need to make sure that your policy offers the required coverage limits to ensure you comply with all local laws.
#3: Commercial Auto Insurance
If you will be using a vehicle to conduct business, you will need to purchase a commercial auto insurance policy as well. This fact remains true even if you plan to use your personal vehicle and already have a traditional auto insurance policy. This is because traditional auto insurance policies will exclude coverage for any damage that occurs while using the vehicle for commercial purposes. This includes things such as making deliveries, visiting job sites, and even completing errands on behalf of your business. If you plan on using your vehicle for any type of business purpose, you will want to make sure that you are covered by a commercial auto insurance policy.
For more info about business insurance, contact a local company.
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