Many potential clients never work with uninsured vendors because the risk is simply too high. That’s especially true if you have a contracting business wherein your workers go to the client’s property. Insurance is vital in these situations, but not just any policy will do. You need a policy that minimizes your risk to the greatest extent possible.
But there are more concerns that just these financial matters. Insurance not only reduces your risk, but also protects any vulnerable property that you own. Even more importantly, a good business insurance policy gives you peace of mind, so you can focus on other things. A site like EquifyLLC.comcan design a plan that brings it all together. For the most part, this plan includes several different types of policies.
GL Insurance
A general liability policy is the foundation of most business insurance plans. It covers falls and other site-related accidents. Most landlords will not rent to businesses without GL insurance, because it pute their property at risk. This type of insurance is usually quite affordable, largely depending on the deductible you are willing to pay. There is a balance here. A high-deductible policy will have lower premiums, but such coverage greatly increases your exposure in the event of a claim.
E&O Insurance
Errors and omissions insurance is also called professional liability insurance. IT pays for claims related to negligence and failure to perform a business task. Cost varies significantly in different industries.
Workers’ Compensation
In most states, if you have at least one employee, workers’ compensation insurance is mandatory. Even if there is no such requirement, this type of policy is a good idea. Workers’ comp pays for lost wages and medical bills in the event of an employee injury. Even if your employees are in low-risk desk jobs, just one fall or case of carpal tunnel syndrome could be a very expensive claim.
Auto Insurance
If you use your personal vehicle for business purposes, your personal auto insurance policy may not cover any accident-related losses during such periods of use. That could also apply to Uber and other rideshare drivers. So, before you try to earn some extra money for your startup or conserve your resources by using your personal vehicle to make deliveries, take a good look at your policy exclusions. If you are not properly insured, address that deficiency.
Cyber Liability Insurance
If you rely on the internet for any purpose, you are vulnerable to a cyber attack. Small businesses are sometimes a more tempting target for hackers than large ones, due to a perceived lack of security. The same principle applies if you accept credit cards or electronic payments. The risk is significant. 60 percentof hacked businesses are unable to reopen.
Business Interruption Insurance
A man-made disaster like a cyber breach can shut you down, and a natural disaster like a hurricane can significantly affect your cash flow. BII helps make up for the income that you lose during such a time. Cost depends not only on the financial risk, but also on the risk of a disaster. If your business is near a fault line, expect to pay a little more.
Solid insurance coverage helps your business get off on the right foot, so reach out to an agent today.
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