If you are starting a new business, you are well aware of all the things you need to do. From securing a location to buying office furniture and equipment, the details seem endless. One item on your long to-do list is captive insurance to protect your business. While you may think few risks are associated with your business, it is still a good idea to have some form of business insurance. What you might not need today may certainly prove worth it as your business grows.
Taking the First Step
In the beginning, you may only need a few simple policies or a complete portfolio of business insurance policies. Protection from internal and external threats is just as important as having a solid marketing plan. First, meet with your insurance agent to discuss which polices specific to your industry are best based on the risks you might face. This is the optimal time to evaluate those risks and review available options that fit your need.
Basic Insurance Policies Every Business Should Consider
Whether new, small or large, several basic business insurance policies apply to every business.
Business owners' policy - Also known as BOP, this is the ultimate insurance for small businesses. Several types of insurances are bundled together so you can have broad coverage at a lower price. Protection for property, business interruption and business liability are included.
Commercial general liability - This policy provides coverage for injury or damage to someone who either you, your product and/or service or an employee caused. Your legal defense as well as any judgments against you are typically paid for from this type of policy.
Commercial property - This insurance protects your business assets from a loss from a covered peril. Smoke, fire, hailstorm, vandalism and any other named peril in the policy is covered. Earnings can also be protected if there is a period of time that you are unable to operate.
Commercial vehicle - You definitely want to get this type of insurance if driving is necessary for you to conduct business. Similar to a personal auto insurance policy, your business is covered for any costs that occur after a collision or someone else's vehicle damage. If personal vehicles are used to business purposes, you may also consider getting non-owned auto liability coverage.
In addition to these policies, you may also consider purchasing group health insurance to include in your employee benefit plans, if applicable. Your needs are determined by the type of business you start. Just make sure you are covered in all the right areas.
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