If you are just starting a small business, getting adequate insurance should be a major factor for you to consider. As an entrepreneur who is just starting out you can expect certain risks to be involved, so it is essential that you start off your business well protected. This is where different types of insurances come into play, and this article is here to help you sort out which five are an absolute must have in order to safely start you next small business venture.
Errors and omissions insurance
Also known as professional liability insurance is essential for new businesses. It protects you from possible negligence claims that resulted from mistakes or failure to perform, which is not that impossible if you are just starting out. However, it is important to state that these types of insurances are tailored to fit your business needs, there is no cookie cutter mould for this type of protection for your SMB. Each industry has a different set of relevant concerns when it comes to professional liability, and so the insurances differe in accordance to that factor.
You might think that since you are just starting off there isn’t that much property to insure, but it is important to have insurance for what you have so far, it will save you additional expenses if something goes wrong. So apart from insuring your office space and inventory, you should also consider getting quality vehicle insurance, especially if your car is essential for your business operations. A lot of small businesses from different countries including New Zealand consider this the most important, so they turn to trusted companies like Youi NZ in order to get quality and affordable car insurance.That way they can feel their property is protected at all times. Making it easier to conduct their business.
Data breach insurance
In this tech filled day and age it is essential that all our physical and virtual data is protected. Having data breach insurance is a protection for both your SMB and the clients, and it will definitely help you sleep better at night. This type of insurance protects you from legal liability and loss in case sensitive information has been leaked electronically or via paper files. And you won’t have to pay enormous sums in legal fees in such situation. This is quite important, since even if you invest in top quality data protection there is still no 100% guarantee, with the risk of human error or possible hacker attacks. This way, by getting data breach insurance you will be able to sleep more easily at night.
Workers’ compensation insurance
Of course every business needs quality workers, but hiring a new workforce includes adding workers’ compensation insurance to your business’s insurance policy. This type of insurance is meant to cover medical treatment, disability and death benefits in the event of employee injury or death as a result of their work at your company. Now even if your business seems like a low risk option, and there are no immediate dangers you employees are exposed to, this is still a must have considering that the risks can be as simple as slip-and-fall injuries or some medical issues you were not made aware of. So make sure you get this type of insurance as soon as you hire your first employee, that way you will be well protected from day one.
Product liability insurance
This last type of insurance is especially important for small business and startups. So you have this great product, and you have gone through all the initial testing periods, but you have just now placed it on the market and there is still a possibility of something going wrong. You definitely need to get protection from possible lawsuits. The coverage in these situations is tailored to your business and product needs and is designed in such a way so as to provide complete protection. There are some circumstances even you cannot foresee and that is why it is essential to have a well rounded product liability insurance that can take whatever your customers throw at you.
You are now well protected and ready to start your small business. As your company develops there are other insurance options you should take into considerations, but for now this is what is essential. It sometimes seems like a large investment paying all these insurance policies, but considering the risks and the amount of money you stand to lose if you are not insured, it is just smarter to have all of these in place. You will sleep more soundly knowing your business is completely protected.
Author: Oliver Curtis
Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.