If you are an entrepreneur, you already know that starting a company is no walk in the park. It takes time, dedication, lots of brain work, legal procedures, and financial investment. While you may feel the need to catch a break from all the financial pressure of insuring your company, there are many benefits that you gain from business insurance. While looking for the best options to insure your company, save yourself additional stress by hiring an agency like Eagle Insurance to do the work for you. A suitable agency will find you an insurance company which suits your specific business needs.
Types of insurance you should have
General liability insurance
You are in trouble if you do not have third-party insurance just yet. This kind of insurance covers injuries or damages to employees, clients, and other people who are involved with your company. Coverage includes slips and falls and illnesses or injuries obtained when using your product. General liability can also cover the death of third parties.
Cyber insurance covers risks associated with a breach of data. Data is a business’ most valuable asset, and any interference such as leakage of confidential information can bring a business down. Accidental data breaches can occur, for example, when an employee clicks on a phishing email and sends insider data to a hacker. Such an error can cause numerous financial losses to your business which you can quickly recover if you are insured.
Insurance for worker’s compensation
If you have any number of employees whom you pay a significant amount of money, it is prudent to obtain workers compensation insurance. In some states, it is mandatory to have this kind of insurance if you have more than three employees. The rules vary from state to state. In a case where you are unable to pay your employees for viable reasons like substantial business losses, workers compensation insurance will cover for that.
Commercial property insurance
Commercial insurance covers your business property from unforeseen perils such as fires, theft, and burglary. The insurance company will pay for the sum lost or damaged in case of an unexpected occurrence.
Business legal expense insurance
Even if your business is an incorporated or limited liability kind of business, your assets are not safe from a lawsuit. Your business is especially vulnerable to lawsuit losses if you are a sole proprietor. As a sole business owner, you are the face of the business, which makes you personally liable for all mishaps. Legal costs are usually very high and can potentially kick you out of business.
Nobody wants to put their money in a business whose future is not assured. If you are going to get more funding from serious investors, then insuring your business will be one of your strong points. You will also have an easier time getting loans from banks and other financial institutions. Moreover, you can negotiate for cheaper rates if you have insured your business.