As an entrepreneur, your business is likely your passion that you’re working hard to build. All businesses take on risks, but could your business survive in the case of an emergency? Depending on your business you may have several assets including vehicles, office space, equipment and inventory. In addition, those who work for your business may have multiple roles that could be difficult to replace. Furthermore, your most challenging asset to replace, is yourself! Without these assets and resources, could your business continue? One way to mitigate risk is to ensure you have the appropriate commercial insurance. There are many insurance options out there, so what is the best insurance for entrepreneurs?
Business Insurance for Entrepreneurs – What Do I Need?
Your insurance needs vary depend on many different factors that make up your business. This includes the type of industry, business size and business location. We recommend speaking to an insurance broker who will take the time to understand your business needs. Your broker will be able to find the best Insurance for entrepreneurs in your industry.
Insurance for Individuals in your business
There are several different types of insurance that you may need for yourself. As an individual, working for your own business you should consider insurance for the key people in your organization. This includes yourself as the owner. If you were to lose one of the key people in your business, would this significantly impact your business? If so, consider these types of insurance can protect your business and family.
- Life insurance : If you own a sole proprietorship, as the owner you are personally liable for all the debts of the business. Having the right life insurance will protect your family in the event that something happens to you.
- Disability insurance: If you are unable to work due to an injury or illness, how will you afford to pay your obligations? Having Disability Insurance can provide income security for a set term.
- Partnership insurance or buy-sell insurance: If you have a business partner, would you be able to purchase their shares if they were to pass away? Having partnership insurance provides the funds to purchase the remaining shares and continue running your business in the unfortunate event that your partner dies.
- Critical illness insurance: If you are diagnosed with a critical illness, your focus should be on recovery not financial concerns. Critical illness insurance will provide you with a lump sum of money upon diagnosis of a critical illness specified in your plan.
- Key person insurance: If you were to lose a key person in your company, would your business be affected? Key person insurance is like a life insurance policy on an employee. If a key person unexpectedly dies, the company receives the funds to provide more options on how to move forward.
Insurance for your business property and earnings
Protecting your assets and earnings should be a priority when considering insurance for your business. If your business experiences a disaster, you want to be protected to ensure you can get back to business as usual. There are several types of insurance that you should consider:
- Property insurance — Similar to home insurance, property insurance provides coverage for the property and building that you own.
- Contents insurance — Contents insurance protects the assets that are in your business premises. This is a good option if you are renting a property as their property insurance may not cover your contents.
- Business interruption— How much money would you lose if you had to shut down your business for a day? What would this sum be if this extending to over a week? Protection for business interruption will ensure that loss of earnings are covered.
- Auto insurance — If you are considering using your personal car for business, you need to ensure that your insurance policy covers more than just your personal usage of your vehicle. You will need to insure any vehicles that your business owns.
Mistakes happen. Yet, when it comes to your business, they could result in significant losses to your business and employees.
- General liability — This insurance covers costs associated with injury to employees or clients if they are injured on the business premises.
- Product liability — If your products have defects or end up causing injury to the user, the product liability can provide financial protection for your business.
- Professional liability insurance — If an employee made a mistake and resulted in costs to your clients. If you had legal action taken against your business, would you be protected? Errors & Omissions Insurance provides an additional level of coverage when performing professional services against such errors.
- Cyber liability — In the event of a security breach, your data could be compromised. This could result in devastating effects on your business. Cyber insurance can cover costs associated with this liability.
Lastly, another type of insurance to consider is health insurance. When there are more jobs than qualified candidates, companies need to offer better compensation packages to attract top talent. Providing a good health insurance plan can be a great way to attract and retain employees.
Billyard Insurance Group understand commercial insurance and have a whole team specialized in providing insurance for your business. If you are an entrepreneur, our team understands the best Insurance for entrepreneurs. Contact us today for a quote.