Starting a small business comes with a lot of necessary costs. When you’re still in the black, you’re probably wondering how to cut back on your spending–but trying to use your personal insurance to cover your business isn’t it.
Having even a small insurance bundle is better than having no insurance, at all. We understand needing to cut back on spending, so we’re going to talk about the main types of business insurance that you can’t afford to skip out on.
Remember, insurance is here to protect you from financial ruin. Yes, you’ll have to pay money upfront, but you won’t regret it when some major expense comes along.
Read on to find out about the main types of business insurance that you need to have ASAP.
General Liability Insurance
If you have a brick-and-mortar location and customers or clients are stepping foot on it, you’re going to need business liability insurance. This is one of the most important resources that you can have to protect both yourself and consumers.
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What does business liability insurance cover? When you allow people on your property, it becomes your responsibility to keep them safe from harm–and your liability if they don’t. Liability insurance covers everything from slip-and-fall accidents to personal property damage.
Commercial Property Insurance
Whether you rent or own your commercial property, you’re going to want to insure it. That way, if any major damage occurs due to something like a fire, a wind storm, or a falling tree, you have the coverage you need to repair or replace that property.
Keep in mind that you may need additional policies to receive full coverage. For example, most basic commercial property insurance plans to insure against flood damage. If you lease out company vehicles, you may need a separate commercial auto insurance policy, as well.
Business Income Insurance
In the past two years, we’ve seen what an involuntary closure can do to a business. It can shudder it for good. Business income insurance is designed to keep that from happening whenever possible.
Business income insurance is designed to replace any lost income due to certain unexpected closures. For example, if you have to close your location during repairs after an accident or disaster, you can file for business income insurance. This will replace most or all of the estimated income you’re losing during your unforeseen closure.
Get These Types of Business Insurance ASAP
If you’re thinking about cutting costs by putting off your business insurance coverage, think again. These types of business insurance are necessary for any business, no matter how new or small. Make sure that you’re protecting yourself from liability, property damage, lost income, and beyond–you won’t regret it in the long run.
Want to know what else you need to get your new business off the ground? Take a look around as we talk about everything from writing a business plan to developing a marketing strategy.