Essential Insurance for a new Business

In this informative article ‘The Essential Types of Insurance a New Business Needs’, Tl Kleban explains the elements that must be covered in any new business.

Purchasing business insurance is not the easiest thing in the world to do. As a business owner, I can’t think of any other task that is so full of complexities, industry jargon, and intricate legalities. The problem is that for how confusing it may be you can’t operate a business without any. Choosing the right business insurance means life or death for a company.

The first thing you need to do is find the right mix of liability insurance, workers compensation insurance, and umbrella liability insurance for a fair and reasonable price. For most business owners this isn’t something they do every day. Many are left feeling confused or intimidated. Here is a little list of some of the more important business insurances you need:

• Property insurance – This type of business insurance helps you out in the case of any loss or damage to the location of your business as well as the contents inside. There are even specialized instances of property insurance that insure against specific risks such as fire or flood for example and only protect you from that type of loss. It also doesn’t matter if the business property is owned, leased or rented.
• Liability insurance – Liability insurance protects your business in civil legal cases. Most of the time this insurance is used in case of a negligence case due to you a business matter or employee. One way to think of liability insurance is to consider it basically a negligence insurance.
• Commercial auto – Let me stress this to one point before going any further. Your commercial auto insurance is not the same as your personal one. The commercial only covers vehicles owned and used by your business. Vehicles required to be titled by your state, must have a commercial auto policy. This covers against property damage to vehicles and damage caused to others by those vehicles.
• Workers’ compensation – As a new business owner one of the first things you’ll learn is that you will need to get insurance for your employees to cover any on the job injuries. This is referred to as worker’s compensation insurance. Every state requires a business to have it but each has a different set of rules for what a business needs to cover. This insurance protects the employer from being sued by the employee due to the injury and the employer pays into a system that provides the injured employee an automatic payment to cover medical bills and other expenses while out of work.
• Life and disability – This final type of business insurance protects against the death or disability of important employees. It’s basically set up to cover the key employees critical to the function of the business in case of death or anything else that could potentially handicap the business. If a partner in the company dies then the policy can be used to buy out the share of the interest from the estate.

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