One of the most important steps before starting our own business is looking for a Commercial Insurance Plan to make sure we remain protected in case of an unfortunate incident or, worst case scenario, we happened to go out of business as a result of a natural disaster or any other unforeseen incident. Having so many options for insurance nowadays, looking for the best coverage plan might seem like an overwhelming task at first, but after some research and shopping around online, we will be able to find an insurance plan that will cover our needs and adjust to our budget.
There are several types of insurance plans that businesses and companies require, but not all of those will be a priority for a startup or small business that is yet to start running operations. However, there are some insurance plans that we definitely want to consider and make sure we’re covered, such as Liability Insurance, Property Insurance, and Business Interruption Insurance.
Getting a liability insurance plan has become a must for all businesses and companies, since these plans will protect us in case of an accident or unfortunate incident. There are two different Liability plans that we should consider for our business, General Liability and Professional Liability.
A General Liability insurance plan will protect us and anybody who happened to get injured or whose property ended up damaged as a result of our business operations. Whether it is an employee, a customer, or any other third party, if our company caused damage or hurt something or someone, a General Liability coverage plan will cover the expenses that such incidents might generate, from legal to medical to property repair.
Also known as an Errors and Omissions Insurance, a Professional Liability insurance plan will cover the expenses of any harm or damage that resulted from the service you provide or the products you sell. It is important to understand the difference between General Liability and Professional Liability, for one does not equate the other.
General liability covers accidents and damages not related to your services, but Professional liability does, covering expenses for damages caused by mistakes, errors and negligence when we or our employees where providing a given service, or as a result of a product failure or malfunction.
All the equipment, furniture, and other property or spaces that we designate to our business represent a significant part of our initial expenses when we decided to start a business, and protecting such an important investment is more than necessary. This is why getting a Commercial Property Insurance plan should be one of our main concerns, as it will cover the expenses in case our business property resulted damaged, lost, or stolen as a result of an adverse event, such as a fire, flood, theft, or any other incident of the like.
A Commercial Property Insurance will also cover the expenses of repairing or recovering our property, and some plans can also provide us with additional funds so we can return to operations as soon as possible, minimizing the loss and the chances of having to go out of business as a result of an unfortunate incident.
Business Interruption Insurance
Since not all Property Insurance plans cover the loss of income or revenue after a disastrous incident or event, looking for a Business Interruption or Business Income Insurance plan should also be considered, specially by those companies who operate in a physical space. Just like we mentioned above, this insurance plan will help us cover the expenses of having to interrupt or stop our operations, as well as covering additional expenses that are necessary for us to restart operating in temporary locations, or with leased equipment.
Keep in mind that every insurance agency will have different coverage plans, and different terms and conditions may apply, which is why we always recommend consulting with a professional insurance broker, ensuring you get a plan tailored around your particular needs.