If you are new to the world of entrepreneurship, there are many things on your startup checklist that need to be done.
One of those things that need to be prioritized is your business insurance.
Remember, some insurance types are required by law for a business, while others may be something you want to consider for your particular industry.
Business insurance protects your investment and can provide you with much-needed compensation in the case of an accident.
Some insurance coverage is optional, while others, like worker’s compensation, are considered mandatory in most states.
This is also referred to as liability insurance and is important for a startup. It covers the result of any injuries or property damage connected to your business, including slander.
Data breach coverage is something a startup that handles any kind of personal information should consider.
This insurance coverage is for your startup’s property and any physical assets you may have. This includes anything from your building and inventory to furnishings and equipment.
If you carry a loan for your startup through a bank or other financial lender, then commercial property insurance is usually required.
Some commercial property insurance policies also include business interruption insurance, which covers your business when unexpected events cause your operations to cease.
It replaces income, helps you continue to meet financial obligations, and can even cover temporary office space if needed.
Many states require this commercial insurance because it replaces the wages and pays for an employee’s medical care when they are injured on the job. If you are a startup that doesn’t have employees on staff yet, then this is something you should research further when you start hiring staff.
If you have a vehicle you use for commercial purposes, then you want to have commercial auto insurance. Some states also consider this a requirement. It provides financial protection against any liabilities there may be due to an incident involving your commercial vehicle.
Flooding can happen anytime and anywhere, so flood insurance is something you want to consider for your startup. Flooding can cause significant damage and can result in a big loss for your business.
As a business, you can face a lawsuit or liability claim at any time. It doesn’t matter if you are just starting out or if you are already a well-established business.
When researching your insurance options, be sure to research what coverage is mandatory in your particular state and your specific industry. If you have a higher risk level, you may find that you have to pay more for premiums, so keep this in mind.
If you need help choosing the best commercial business insurance or are just unsure of where to begin to make sure your startup is covered, then contact the professionals in Northridge, California at Panorama today. We can guide you through your options and help you find the coverage your startup needs.