I Just Started a Business! What Type of Insurance Do I Need?
Congratulations, you’ve started a new business!
WHAT INSURANCE AM I REQUIRED TO HAVE, WHAT Insurance IS IMPORTANT TO HAVE AND WHAT Insurance Will I NEED IN THE NEAR FUTURE AS MY BUSINESS GROWS?
At Grow Green Insurance we have over 75 years of combined business knowledge and know a thing or two that can help you have the right coverage and not overspend while your business is growing.
WHAT INSURANCE AM I REQUIRED TO HAVE AND WHAT IS THE MOST IMPORTANT WHILE MY BUSINESS GETS STARTED
GENERAL LIABILITY
Let’s start with basics and we’ve all heard of General Liability. General Liability Insurance protects your company in case something you do causes damages or injuries to a third party. For example if you break something you don’t own, or someone is injured at your business, your General Liability policy would cover the accident. There is a lot to know about General Liability such as limits, endorsements, exclusions, etc. To simplify it, you can think of your General Liability policy as the policy that will provide coverage when something bad happens to someone else.
What other types of insurance should I look at when starting a Business?
WORKERS COMPENSATION
Another policy you should investigate is Workers Compensation. Workers compensation protects you and your employees if they are injured during the line of duty on and off the job site. But you may not need it if you 1) do not have any W2 payroll or uninsured 1099 subcontractors or 2) your state may not require it and may not be applicable to your business.
WHAT TYPE OF INSURANCE SHOULD I BE THINKING ABOUT WHILE BUSINESS GROWS?
We see a lot of people getting Cyber Liability. These policies can protect against hacking or DDoS attacks. Usually most small businesses don't have a lot of initial data to protect (unless in specialized industries) so we would consider refraining getting this type of coverage unless it is included or offered at a very low cost with your General Liability policy. Again, this is something you should review with your broker.
Many people want to have Tool or Equipment Coverage. While this coverage can be great for larger equipment or if you're going to be renting equipment (it can be more cost efficient than paying the dealership an insurance fee for rentals). Just make sure the deductible is small enough to make it worth it ex. $1000 deductible on $5000 worth of tools, may not be worth it!
Commercial Auto can be required in some industries, delivery or trucking for example. Unless you are actively using vehicles for day to day activities, you may not be required initially. Do keep in mind, many personal policies do not cover you while you are using your vehicle for your business, so do inquire with your personal auto policy to see if you need to make changes. Many times, you can get a policy that covers your vehicle for both personal and commercial use and it may not be that much more if you are driving a standard vehicle.
Any other insurance I may need to know about?
Yes, you can purchase coverage for just about anything. If you are just getting started, unless there are specific needs for your situation, we would try to minimize your insurance spending until your business really needs it and starts growing and make sure you purchase the right coverage for your specific business.
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