Do Entrepreneurs Need Business Insurance?
Being an entrepreneur is no piece of cake. You are going out on your own, venturing into a new industry and the future is unknown. Many factors will contribute to whether your new business will be a success or not. One of those factors is whether you purchase comprehensive business insurance from the get-go. Below, we will discuss what types of business insurance you should consider as an entrepreneur who is starting your own company.
Types of Business Insurance for Entrepreneurs
Business Liability Coverage
No matter what industry you are in, no matter what you are selling — service or product-wise — it's essential to have liability coverage. This coverage is in place to protect you in the event of someone holding you liable for an injury or accident caused by your products or services. Likewise, if you are a professional offering a service, you can protect yourself from claims of negligence or errors. A certain amount of liability coverage may be required, but you may also opt to purchase additional liability coverage for your full protection.
Business Property Coverage
Property coverage protects your office location and interior property (furnishings, technology, production equipment, inventory, etc.) from natural disasters, fires, theft and other unexpected events.
Business Auto Coverage
If you or any of your employees must drive for your business, you’ll need business auto coverage. Remember that you’ll need this type of coverage even if you will be driving your own personal vehicle(s) or if your employees will be driving their own personal vehicles. If the purpose of the driving is business-related, regular auto coverage won’t cover any accidents or auto damage.
Data Breach Coverage
All businesses — in all industries and of all sizes — must have data breach coverage. This type of insurance can help pay for your expenses if your data or network is breached by hackers. Cyber attacks like these are on the rise around the nation and can cripple a business that is just starting up. Data breach coverage can take care of ransomware payments or related IT costs that help you recover your data or system access. It’s a good idea to have it from the very beginning to prevent such expenses from putting your business under.
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