Every business has different insurance needs. No matter the type of startup you’re involved with, you’re going to need to insure yourself. The insurance fees and the depth of coverage may vary, but even a basic insurance plan can safeguard you from being sued and being held financially accountable.
The following are the types of insurance you need depending on how your business functions.
Commercial general liability insurance
Commercial general liability insurance will insure business activities that happen on and off your premises. For example, if someone gets hurt in your office, you’re covered. If your business typically operates on property besides your own, most accidents that happen there are likely covered, as well. The latter situation would include companies such as carpentry businesses, mobile pet groomers and appliance repair companies.
Within this insurance is a completed operations and products section, which covers you if there is a defect with your products or services. This would apply if a mechanic didn’t properly fix a customer’s brakes and that customer got into an accident because of it. Under this clause, commercial general liability insurance would serve as protection. Another situation would be if you sold a toy and it ended up injuring a child. The parents could sue, but insurance would be on your side.
Commercial property insurance
If you own the building that your business operates out of, or you rent a space but own a lot of property inside, you’ll want to sign up for commercial property insurance.
Let’s say you’re a baker leasing a storefront and you have thousands of dollars worth of appliances and tools in your kitchen. If someone breaks in and steals from you, commercial property insurance will help you replace your belongings. If the building you own burns down, along with everything inside, all of your property would be covered by commercial property insurance.
Commercial or business auto policies
Let’s say an employee gets into a company car, goes to the post office to send some business mail and gets into an accident on the way back to the workplace. A commercial general liability policy would not cover this. Instead, that would be covered by a commercial or business auto policy. If you supply on-the-road vehicles for your business, you’ll need to insure yourself.
The only vehicles that are protected by commercial general liability insurance are ones that don’t go on the road. That would include anything from forklifts to golf carts, tractors and bulldozers.
Related: Types of Business Insurance and Why You Need Them
Pollution liability insurance
Your building catches fire and pollutants are released into the air, making everyone in the surrounding community sick. They may want to sue you, but you’ll be protected by commercial general liability insurance.
This insurance will not cover you if your business deals with pollutants and something happens. For example, if you sent out a truck with a diesel tank on the back of it and that tank spilled, only pollution liability insurance would cover you.
Workers’ compensation
Aside from Texas, every state requires that employers enroll in workers’ compensation insurance. This protects them if workers experience injury on the job. When they slip, fall or are hurt by machinery, workers’ compensation will step in to pay their wages and medical bills related to the accident until they can come back to work for you.
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Employment practices liability insurance
Unfortunately, hostile work situations, sexual harassment and wrongful terminations do occur. Companies can protect themselves in these cases if they purchase employment practices liability insurance.
There are numerous activities that your business partakes in, and there is a way to insure and protect yourself for nearly every type of situation imaginable. Take a look at your business and figure out which coverage is right for you. It can be a lifesaver in your time of need.
