The day has come when you are finally ready to purchase the equipment that is needed to go into business for yourself. You may be so caught up in the moment, deciding what type of business cards you prefer or comparing the costs of various types of industrial equipment, that you haven't thought about how business insurance could benefit you. Although you may think that each job that you perform will go off without a hitch, an unforeseen disaster or an angry customer who decides to sue you could have devastating results.
How Do You Find The Right Insurance?
There are many types of insurance that are geared toward business owners, but are all of them right for you? If you are going to be operating from a commercial building and will also be driving to and from job sites, then property, liability, and vehicle insurance are three types of coverage that you need. Property insurance will protect you in the event that the physical building that you work from is compromised during a natural catastrophe, theft, or act of vandalism.
Liability insurance will provide coverage if a client sues you, if they are injured while on your company's premises, or if they encounter damage to their home or business during a job that you are performing for them. Instead of purchasing separate policies or being concerned about having too much or not enough coverage, let an insurance agent tailor a plan that will work for your needs. A comprehensive policy will contain all of the coverage necessary, and you can make adjustments to it if your insurance needs change.
Are There Mandatory Insurance Requirements?
If you will be hiring some people to work for you, you may be required to obtain workers' compensation, unemployment, and health insurance coverage. The stipulations for these types of coverage will depend upon the state that your business is located in. Insurance coverage may also be necessary if you are in need of additional funding and decide to apply for a business loan.
During the loan application process, you may be required to prove that your business, property, and equipment is covered. When you consult with an insurance agent, let them know about your plans and request an estimate for each type of insurance that you are going to need. This type of preparation will help you formulate a budget that includes all of the expenses that you will be facing.