If you’ve decided to start working for yourself and start up your own small business, you’re joining over 20 million Americans that decide to be their own boss. However, as with any business, you get a bit more peace of mind and required financial safety if you take out a commercial insurance policy.
However, as a small business, you can’t just go for the biggest, most expensive policy. You need to carefully select what type of coverage best suits your entrepreneurial needs, and here are a few factors you’ll want to consider when figuring out what’s the ideal commercial insurance package for you.
General Liability Insurance
If your business takes place in a new office or retail branch, this is always a good idea to look into. General liability insurance can protect you against financial accountability for negligence due to premises liability. For example, an auto repair shop that leaves a pool of grease sitting on the floor may be guilty of premises liability if no one cleans up the grease and a customer slips and falls on it. With premises liability, the business is legally and financially accountable for such mishaps, but insurance can help cover the liability.
Professional Liability Insurance
This type of liability insurance pertains to services that might come under fire from a lawsuit. If, for example, you work as a consultant, and a client’s business does poorly, they may blame your advice and consultation. If they decide to undertake a lawsuit, claiming that your professional services caused the issue, and they want compensation, this is where professional liability insurance would step in.
More than any other century previously, knowledge, more specifically data, is power, and most of that data is now stored digitally. Hacking, computer piracy, and other forms of network invasion are everywhere. If you have important confidential information, whether it is your company data or confidential client data, you are at risk of digital theft. Cybersecurity insurance is here to help if you are ever victimized by hacking.
Separate Your Commercial & Personal
This is incredibly important for people starting from humble beginnings. Today’s digital world makes it very easy for people to start a business right at home, but now you have to start making distinctions. The computer you use for home use is now also a work computer. The car you use to buy groceries or pick up the kids may now also be a work vehicle.
It would be best if you started thinking about getting separate commercial insurance for cars or other items in your home that are now a part of your work. If these items are damaged during work, there may not be covered from your existing personal insurance, because now they were being used outside the designated scope of personal insurance.
Staring your own business can be daunting, but if you’re confused about what your commercial insurance options might be, we can help. Contact Panorama Insurance Agency Inc, and explain what kind of entrepreneurial experience you’re having. We can help narrow down your insurance priorities.