What Types of Insurance do You Need to Open a Business?

Panama city insurance

Opening a business can be a very exciting time of life, especially if it your first time owning one. There are so many things to look into and have in order, so make sure you are not forgetting one of the most important aspects of owning a business: insurance services.

Insurance services have a lot to offer and it can be a little overwhelming once you sit down and consider all of your options. Let’s go over a few types of insurance every small business owner should have.

  1. Property insurance
    Whether you own the actual building or just have expensive equipment inside, you should insure it all. Anything could happen from vandalism to fire to theft and you don’t want your business to be ruined because of misfortune.
  2. General liability
    This is something that every business really should have. Having liability insurance can provide a cushion for you should anyone that works for you cause injury to the body or product of a customer or any third party.
  3. Business owner’s policy
    As the business owner, you need to have personal coverage. Most often, these kinds of policies will include property insurance, vehicle coverage, crime insurance and more. This policy is usually a bundle of insurance services so that it saves you money on all the individual insurances you may need.
  4. Worker’s compensation.
    This one is very important. This covers employees while they are working. If an employee gets injured on the job, this insurance will cover their medical benefits and wages. The perk for the owner here, is that the employee can only receive these benefits if he decides not to sue the company. So, in a way, this covers you and your company.
  5. Commercial auto insurance
    We all know about auto insurance and how we need it. If you have company cars, this is imperative. Any vehicle that is transporting business goods or workers needs to be covered in case of damage or accident. The cars themselves need to be covered in case the drivers do not have person insurance. Affordable auto insurance is not difficult to find.
  6. Data Breach
    If you are going to own a business that has access to sensitive information, whether it be about your employees or customers, you will need this. Should anyone breach your security or hack in electronically, this policy covers you against any loss or blame that occurs.
  7. Renter’s insurance
    Chances are, if you are first starting a business, you do not own the building but are renting or leasing. This policy will cover you, should there be some malfunction in the building, for example a gas pipe bursts or a leak causes flooding. Some policies will even cover your rent in a different building for a time should you need to be out of your current place of business while repairs take place.
  8. Personal umbrella insurance
    This is additional insurance on top of what you already have. If you can afford extra insurance, it’s a good idea. This one covers different kinds of things and usually is used when other insurances have been exhausted. It can be used as an extension of any other policy.
  9. Life insurance
    You may not deem this necessary in a business but it is important for loved ones to know, especially because you have a business, that any loans or financial issues will be taken care of and not passed on to them, in the event of your death.
  10. Directors and officers insurance
    This type of insurance protects the higher ups of a company should any of their actions negatively impact the company, regarding legal matters. Any damages or costs that occur during something like this would be covered by this policy.

There are quite a few other types of insurance services out there that can definitely benefit you and your company, depending on the type of business you decide to open, but these give you a general idea of how to get insurance. Many companies will give you free insurance quotes before deciding which company to go with.

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