Insurance is an integral part of many aspects of our lives. We generally need forms of personal insurance like health, renters insurance, and auto insurance to meet the basic needs of our lives and stay safe while doing so. But businesses also need their own, unique kinds of insurance to make sure the business owners and their employees remain safe and protected at work. The question becomes what type of insurance a business need and what each kind is for. Business insurance quotes should be easy to find, regardless of what style you’re looking for, and most major insurance providers will be able to give you at least a quote so you can compare and contrast different providers for different kinds of insurance. To help illustrate the scope of insurance your business might need, check out this short guide going over some of the significant types of coverage businesses typically need.
What Businesses Need Insurance For
To start preparing for your business insurance quote, there are a few things you’ll need to ask yourself before searching. Businesses need insurance if any of the following is true. If you have employees, a physical location, your company’s work is dangerous, you rent your workspace, or your business has sensitive information on file. These are just a few situations that require insurance. If you engage with an employee structure or place of work, you’ll likely need to find some insurance ASAP. Let’s look at different kinds of insurance businesses may need.
Types of Insurance
There are many types of insurance for specific situations, so please remember that this list doesn’t include every kind or every situation a business may run into. This list contains several significant forms of insurance that, in many cases, will be required by the state. With that being said, let’s get started.
Personal and Professional Liability
The most important kind of insurance to have as a business is liability insurance. These insurances protect employees and businesses from damage to property or accidental injury. And not just physical damage. Liability insurance can also save you and your business from libel and slander. General liability is essential if you have employees who come to a physical location to do their work.
Worker’s Comp
Worker’s compensation is another essential form of insurance for businesses with employees other than themselves. Workers comp helps secure lost wages and pay for medical care if injured on the job. Not only is it a good idea to get workers comp, it’s required in almost every state for businesses to provide workers’ compensation in the event of an injury or a medical event.
Commercial Rental Insurance
If your business operates out of any rental property or physical location, commercial property insurance is a big thing to ensure you have secured early on. This kind of insurance protects your business property against accidental damage. If you run your business out of home, you can check to see what options may be available through your homeowners’ insurance. This insurance can be a lifesaver when things out of your control happen to your building. It does happen, and when businesses aren’t insured, it can put them in a tough situation.
Brand New Businesses
The only exception to some of these insurances are for companies so new that they don’t yet have employees or an office to seek protection for. If your business is small and essentially just one employee, these things may not be necessary immediately. However, liability and company standing will affect whether or not you still need forms of liability insurance. It’s a smart idea to register your business as an LLC and get additional insurance that protects you from being held personally accountable for things related to your business.
Conclusion
In short, the answer to whether your business needs insurance is a resounding yes. You’ll need insurance to protect you, your employees, and your office space. In many cases, the state will require this, but some are still left as optional coverages. Make sure you cover all the bases you can afford when looking into insurance and do some more research to discover all the different kinds there are. This list is just a starting point for new business owners curious about what kind of coverage they will need.
