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The Best Business Insurance Checklist New Business Owners Need to Be Protected
The easiest way to make sure you have the insurance to protect your new business is to use a business insurance checklist.
Opening a new business is exciting. You sign a lease for your space, buy office supplies, get your new business cards, and start thinking about your grand opening. The time and money and energy you've put into this venture is about to turn into a real, tangible experience.
Because of all that time, money, and energy, though, you want to cover your investment in case anything goes wrong. The hard part, however, is knowing what kind of insurance you need. "Business insurance" doesn't mean the same thing to every business owner. That's why a business insurance checklist is one of the most helpful ways to avoid leaving any gaps in your coverage.
Like any checklist, you'll get the most out of it by customizing it to your specific needs. A construction contractor, for instance, would need different coverage than a retail shop. Despite that, there are enough similarities in any new business that a business insurance checklist is a worthwhile engagement.
A business insurance checklist to protect your new business from the unexpected.
Workers compensation insurance
If you have employees, there's a good chance you need workers compensation insurance. There are a small number of exceptions to this requirement, but even in the few states where it isn't required, it's a smart idea. Workers compensation insurance covers employees who get hurt on the job.
General liability insurance
General liability covers your business if someone other than an employee gets hurt or injured at your business. Employee negligence or a slip and fall are two common situations where you would need liability insurance.
Business property insurance
This coverage is for your property, inventory, or equipment in the event of damage or theft. Contrary to popular belief, the building owner's liability insurance doesn't cover your business—only the property it's in. Pekin Insurance also includes income loss as part of our business property coverage.
Business auto insurance
If you have a company vehicle, you need business auto insurance. Vehicles may include delivery vans, construction vehicles, or even a company car.
Your business may or may not be required to offer health insurance, but one thing is clear: if you want to attract the best employees, offer health insurance. Employees are looking for companies that offer benefits, including health insurance. There are a lot of ways to include health insurance in your employee benefits package, but the best way to learn about what works best for you is to call Fergurson Insurance to discuss your specific situation.
In addition to these typical coverages, add some of these enhancements to your business insurance checklist to truly keep your business secure.
Errors and omissions coverage
For contractors, an errors and omissions enhancement will cover you either for faulty work or defective products, whether because of a material defect or a mistake on your part. Even if your work is impeccable, you never know when a mistake can crop up.
Equipment breakdown coverage
In the retail business, equipment breakdown could mean a big loss in income while you're waiting for repairs or replacement. From your HVAC system to your refrigerators in a restaurant to your computer system, almost every business relies on electronic and mechanical equipment to keep their doors open. Equipment breakdown coverage can cover your loss of income, product loss, and the repairs you need to get moving again.
Tools and equipment coverage
Contractors rely on their tools to make a living. Insurance coverage enhancements that cover those tools, as well as accounts receivable coverage and rental reimbursement, are essential in keeping your contracting business on its feet.
This might seem like a lot to keep up with, but given the effort you put into bringing your new business to fruition, you want to do all you can to keep it safe. Beyond that, your clients, customers, and employees expect you to have insurance coverage. And the risk of a disaster or accident can't be overstated. There's no reason to put all your hard work on the line.
The good news is that many insurance companies, like Pekin Insurance, offer insurance packages that cover all your business needs. Your agent can also work with you to customize a business insurance package specific to your business situation. Get in touch with Fergurson Insurance today to learn more. Your business is worth it.