Taking the leap into a new business venture is ambitious and thrilling. It’s basic industry knowledge that new businesses fall into sticky situations sometimes. As you start your business, it’ll be important to cover yourself and your team for the potential risks that come with it. Keep in mind that if you don’t have insurance coverage, you’ll have to pay out-of-pocket for any damages or legal claims made against you. Checking your state’s business insurance requirements will help you narrow down the policies you need for your new start-up.
Basic Insurance Policies Your Start-Up May Need:
- Business Owner’s Policy
- General Liability
- Commercial Property Insurance
- Worker’s Compensation
- Commercial Auto
- Commercial Flood
- Commercial Umbrella
- Professional Liability
- Business Interruption
What Is the Total Cost of All The Policies?
The price you end up paying for coverage will depend upon the type of business you will be running. The insurance rates for businesses vary by industry. Higher risk businesses will end up needing to pay more for their premiums.
Once you begin to buy all of the insurance policies that you need, it’s important to be mindful of the deductibles that come with them. Your deductible is the amount that you will pay out of pocket for a claim before your insurance company will cover the rest of the expense up to the policy limits. Usually, a higher deductible can save you money on your premium, but you’ll pay more out-of-pocket if you need to make a claim.
You Only Need A Few Policies, Right?
The answer to this is, maybe. As mentioned before, the insurance needs of a new business can vary greatly based on industry. Below are listed some ways that could help you lower the cost for your start-up’s insurance:
- Comparing Coverage Options
- Bundling Policies
- Driving Safely
- Look Into Discounts