Establishing a business doesn’t end once you’ve obtained permits and licenses. Before you begin operations, it’s crucial to have protection against numerous risks. Your needs will depend on the type of business you own. It’s best to go over your options with an insurance agent, but below is a list of essential coverage you should know about.

What Insurance Do You Need?

1. Comprehensive General Liability

Most businesses benefit from having general liability insurance. It provides coverage against accidents or injuries due to your products, offered services, or anything that happened on your property. If there is bodily injury or property damage, this policy will protect you from medical payments and legal expenses.

If your business offers professional services, such as accounting, consulting, or designing, you’ll need professional liability insurance. Known as errors and omissions insurance, it offers protection against negligence claims stemming from mistakes or failure to perform. There are limitations to both policies, so ask your insurance agent what they cover to avoid surprises.   

2. Workers’ Compensation

If your start-up has employees, you must also have workers’ compensation, which is a requirement in all states. It will cover any medical treatments, disability and death benefits, and lost wages when your workers get injured while on the job. Even with safety protocols implemented, accidents happen, which this coverage will protect against.

3. Property Insurance

Whether you own or lease the workspace, property insurance is a necessity to business owners. If a named peril happens, such as fire, theft, or vandalism, the insurance will pay for the repair or replacement of damaged equipment, structure, and inventory. Sometimes, it may not cover events like flooding, earthquake, and other “acts of God.” Confirm with your insurance agent on policy exclusions.

4. Auto Insurance

If your operations rely on vehicles, you’ll need insurance for them. It works similarly to your personal car insurance—the carrier will pay for any damages if the vehicle is involved in an accident. The basic coverage includes third-party injuries, so if you want something more comprehensive, consult an insurance agent on their recommended add-ons.

5. Business Interruption Coverage

Cessation of operations is always a possibility and one that many business owners are ill-prepared for. One way to lessen the blow of unexpected stoppage is to have business interruption coverage.

You can make a claim, and the amount may be enough to cover for overhead and other expenses. It will also protect you against possible lawsuits due to the non-fulfillment of duties during the closure.

Learn the type of coverage you need for your business by speaking to an insurance agent at ​MP Davis Insurance Agency. Headquartered in Randleman, NC, this local agency has helped clients throughout the Piedmont Triad area find the best business insurance policy since 1974. Request an insurance quote today by calling (336) 498-7606 or sending a message online.