When you choose to venture into entrepreneurship, you open up yourself to a host of risks. Before even having your staff employed, your small business will already be at risk of various things and as such, it is pertinent to figure out your business insurance options before opening up shop. In the event that you are hit with an insurmountable lawsuit before your business is on its feet, it could be enough to annihilate the entire venture. Here are some of the different forms of business insurance you could consider to protect your start up.
Professional liability cover
This type of insurance is also referred to as Errors and Omissions insurance. It protects your business against any negligence that could have occurred during business dealings, which would result in either not performing up to task or not delivering at all. However, it should be noted that this type of cover does not have blanket specifications to fit all industries. If you would like to get this for your business, you would have to discuss with your insurance provider on how best they can tailor this cover for your business.
A common misconception that new entrepreneurs have is that is you are leasing a property then you are not liable for its protection. It should be noted that the property you will be working from will house all business related paraphernalia and as such if it is at risk, so would your equipment, your inventory etc. By getting a property cover for your business, you ensure that your assets and anything business related on the site is protected too. However, some providers will not provide property insurance to cover against destruction caused by floods, earthquakes and other natural disasters. If you were concerned about natural phenomena, then you would have to enquire from your provider if they can customize your policy to cover these too.
Home based cover
In this digital age, it is not uncommon to find more and more people working right from their homes rather than leasing or buying a commercial property. However, in the event that any damage occurs on your business related assets while they are in your home, they may not be covered by homeowners insurance. This is why it is pertinent for new businesses that are still operating from home to look into home based insurance covers from their provider. It will typically provide protection for any business related equipment as well as your business' inventory.