Insurance

When starting a new business there are lots of things to keep in mind.  Everything from suppliers to taxes and agreements and deals. One of the first things a new entrepreneur or store owner needs to get in order is insurance. As a new business owner, you put yourself at risk, big risks that can be hard to handle if something goes wrong if you don´t have the right insurance. The risk is that the company crashes before it even started. The number of insurances is almost as large as the number of insurance companies. Here you will find some of the most important insurances for you as a new business owner.

Liability


Professional Liability insurance is an insurance that will cover neglect and damage caused by the business due to mistakes made by the company. There is no one – size – fits – all in this kind of insurance. It is different in every branch and it is crucial that you get the one fitting your business since there are clauses fitting every business specifically. For example, in construction there is a need for a clause on responsibility in a different kind than at a law firm since the work they do is so different.  

Property


If the business owns or rents a property you need an insurance for it. It covers damage or loss of equipment, stock and more in case of a fire, storm or other kinds of damage to the property. Events of mass destruction are often not covered by property insurance. Examples of that kind of events are earthquakes and floods. If the company is situated in an area frequently hit by these kinds of events there is a possibility to sign up for a special insurance covering those kinds of events. Usually they cost a lot but can be worth every penny.

Workers


When the business has started hiring people you need to have insurance for them as well. This is called Workers’ compensation insurance. This is meant to secure costs of health care, sick leave and invalidity and death for the employee if something happens at work. Remember that even an office-bound work can lead to damages that can result in demands for replacement.

Home-based businesses
Many businesses start up in a small scale at home. Remember that your regular insurance does not cover damages caused by running a business from home. It is crucial to read the terms of your insurance if you plan to run your business from home. By taking an extra insurance you will secure the property of your business as well as your private home and things in case of a fire or break-in.

Vehicles


If the company owns any kind of vehicle you will need an insurance to cover both the vehicle and the person driving it. The insurance will cover your vehicle if it is damaged as well as damage on second or third party.  

Vehicles damage
Vehicle damage

Business interruption

In case of a disaster your company will probably stop running. This will render in no income, but the costs will keep coming. It can also result in the company having promised a delivery of some kind that can´t be held because of the disaster which can lead to demands for damages because of failure to deliver.

Make sure to have the necessary insurances, contact an insurance company to get help!