Launching Your Business? The Best Start-Ups Begin Insured

So, you are ready to enter the exciting world of business and launch your company—Congrats! If you are like many new business owners, the launch of your company is equally terrifying as it is exciting. One way to reduce the risk factors, though, and enjoy the process even more is to get the right business insurance from the outset. That’s right, even if you are just getting started, your new business needs insurance coverage.

The most common type of business coverage needed for new businesses is liability insurance. This is especially true if your new business happens to be in the foodservice or childcare industries. There is great potential there, though it would never be purposeful, to harm customers in some way, so you need protection to cover yourself in the event something unpleasant happens. Otherwise, you could be looking at the possibility of closing your business before it really even gets off the ground.  Read on to learn more about business insurance and why it's a necessary part of the process for any responsible owner:

About Business Insurance 

Business insurance doesn’t involve just one type of coverage. Instead, it’s a blend of multiple types of coverage. There isn’t one set of scenarios that business insurance covers, so the mixture allows you to mix and match based on your business’s size and industry niche.

Four Common Parts of Small Business Insurance 

• General Liability: This covers legal expenses, like the cost of legal representation and any damages owed. 
  
  
• Commercial Property: This aspect of business insurance covers equipment, buildings inventory and even your customer’s property if damaged. 
  
  
• Commercial Auto: This covers vehicles and certain auto equipment that is used for your business. You may need a commercial auto policy in addition to a regular car insurance policy if you plan on driving your personal car for business purposes. 
  
  
• Worker’s Compensation Insurance: Most states, including Missouri, require businesses and employees to carry workers’ compensation insurance. This gives your employees benefits to help them recover from work-related injuries or illnesses.  

Other Types of Business Insurance Options

While the four basic types of insurance are the most common, there are other types of coverage you could also consider as a new business owner. They are as follows:

• Professional Liability Insurance: This differs slightly from standard or general liability insurance. Professional liability insurance protects your business in the event a mistake related to professional services you provide is made. 
  
  
• Business Income Coverage: This can help you by providing compensation on lost income that you lost as the result of closing your business because of a covered incident. 
  
  
• Data Breach Insurance: In today’s technologically focused society, this type of coverage is more necessary than ever before. Data breach insurance works by restoring your reputation due to a data breach, and can even cover the cost of alerting members of the public. Therefore, if your business’s network is hacked, this type of policy covers some aspects of the situation. 

Consider Your Worst Case Scenario

Although it’s never fun to contemplate a bad situation, it’s important to at least run over some worst-case scenario situations for your business and consider your options for coverage accordingly. For example, consider the following scenarios:

• Could expensive property or equipment potentially be damaged?
• Are you driving vehicles for business that could be wrecked?
• Is there a risk of physically harming a customer, such as food poisoning?

Contact an Insurance Professional About Coverage 

Even within these categories, there can be a lot of variety in what’s covered. In addition, your insurance needs may also change over time as your business grows. That’s why it’s good to work with an independent insurance agent, so they can help you pick out the coverage you need to get your business started on the right track. Contact our team of insurance experts to discover the best plan for your business.