Insurance is there to catch you when you fall. It is a protective solution that can keep your business up and running. This applies even in situations that you feel are unfair. No one wants to be sued, for example, especially if there’s no clear case of negligence.
Having liability insurance, however, protects you from the brunt of that scenario. So yes, it would have been nice not to get sued because of something you feel should have been tossed out in court, but having a safety net is essential to keep things up and running.
Insurance is a backup option. If you’re lucky, you’ll never need it, but with so many variables, it’s not worth the risk. Risking operating your business without insurance means potentially going bankrupt the first time something like a fire, break-in, or lawsuit happens. Insurance lets you roll with the punches to keep fighting another day.
That being said, not every business will need every insurance option. To keep your overhead efficient, you’ll want to use this comprehensive guide to help you understand a few key basics:
Sometimes You’ll Legally Need Insurance
In many cases, you won’t legally need insurance to operate. This gives you the freedom to choose the policies you think work best for your business and then adapt that policy approach to suit your growing (or shrinking) needs. Always check what your local area requires. For example, certain industries legally need workers to be covered by worker’s compensation insurance.
In other cases, insurance may be a mandatory requirement on an individual basis. The property you rent, for example, may come with a stipulation that you have both liability and property insurance before you sign the lease.
How to Find the Best Policy Rates
When it comes to actually finding and signing up for policies, you’ll need to know two things. One, if you can bundle options to save and simplify the claims process, and two, if you can customize your policy. The best way to find insurance options that suit your business best is to work with a commercial broker on a person-to-person basis. Call up, have a chat, and not only will you be recommended the best commercial general liability insurance for your type of business based on rates, but the one that covers more of what you need.
Everything can be adapted and negotiated, so long as you go through the right channels and have a bit of patience.
Top Recommended Insurance Policies
In general, you’ll want these insurance policies on the books from day one of opening your business:
- General liability
- Property insurance
- Cyber insurance
Depending on your business type, you may also need:
- Worker’s compensation insurance
- Commercial auto insurance
- Product liability insurance
When You’ll Need a Specialist Policy
There are many instances where you may need a specialist policy. This policy will be pre-packaged and ready for you based on your unique profession, or it will have to be made. In most cases, however, there will be a package that fits your business needs, even if you aren’t aware of it.
Working with specialists who know their stuff can help point you in the right direction.