There are always inherent risks with starting any new small business. The very fact that you’re investing money into a new business that may or may not get up off the ground alone is a major risk.
But while youâ€™re going to have to take risks when starting a new business no matter what, there are still steps that you can take to mitigate personal and financial risk as much as possible, and that will be to get the right business insurance policies.
If you currently donâ€™t admittedly no matter much on business insurance and what you need to get, youâ€™ve come to the right place. Thatâ€™s because weâ€™re going to cover the top five insurance tips for new small business owners:
Table of Contents
1. Don’t Take The Risk of Not Getting Insurance
First and foremost, you really do need to get insurance for your business because youâ€™re simply taking too big of a risk if you donâ€™t. Many novice business owners, in particular, make the mistake of not spending the money on insurance, thinking that itâ€™s just an unnecessary expense, only to face risks that will be financially devastating later on down the road.
The whole purpose of insurance is to have security against that kind of financial devastation. Thereâ€™s a whole litany of bad things that could happen to your business that would cost you a lot of money, including an accident in the workplace, a natural disaster, theft, negligence or malpractice, data breaches, flaws in product designs that result in bodily injury to customers, and so on.
2. Get Auto Business Insurance
Does your business own and operate any vehicles? This is just one of many reasons to get an automobile business liability insurance policy. This insurance policy will help your business cover the costs of replacing or repairing your vehicles.
Furthermore, even if your business does not actually own any vehicles, if you or your employees are using your personal vehicles for business use then your personal insurance policy may or may not cover risks that are business-related. An auto business insurance policy, however, will. Typical coverage limits will be between five hundred thousand to a million, depending on the policy.
3. Get General Liability Insurance
Another insurance policy that your business should strongly consider getting is general liability insurance. This will help you to cover the cost of claims that are made against your business for both property damage and bodily injury.
For example, if a customer falls at your business and sustains injury and then makes a claim against your business to cover the cost of your treatment, general liability insurance would cover the costs of that claim.
4. Consider Professional Liability Insurance
Professional liability insurance is used to cover the costs of claims against your business for errors or defects in your products and/or services. For example, if a customer buys a product and there is an error in the product that causes it to do something else other than you advertised, and the customer makes a claim against your business as a result, professional liability insurance would help to cover the cost of that.
Professional liability insurance will also help cover the costs of claims made against your business due to mistakes by employees (such as if an employee accidentally schedules the wrong service for a client or customer, for instance).
5. Consider Bundling Coverages to Reduce Overall Cost
Finally, while some business owners will purchase multiple insurance policies across different insurance companies, you also have the option to bundle your insurance coverages, essentially meaning that you will place all of your business coverage under a single policy under a single insurance company.
The benefit here is that doing so can help you to save money, because if you buy multiple plans under one company, they may offer you a lower monthly premium on each policy. It also makes renewing your insurance much more time-efficient.
Insurance For Small Business Owners
Even if buying insurance policies may seem like yet another unnecessary business expense for when youâ€™re just trying to get your company up off the ground, the truth is that insurance policies can help your business to save money down the road. Donâ€™t take the risk of not buying any insurance at all, and instead, stick to the safe side.
Featured image source: Freepik