Any new entrepreneur faces plenty of challenges. These challenges include identifying the correct market for the product or service, the pricing, and how to promote the product. You also need to look for a property to house your company, business permits and other documents required by the state.
One of the most important elements that every entrepreneur should have before launching a business is insurance. What type of insurance should you get? Read on to know the different types of insurance to get your business started.
- General Liability Insurance offers damages and defense for property damage or bodily injury to a third party caused by you, your employers or your products or services.
- Property Insurance protects your business personal property, such as computers, office equipment, tools or inventory from theft, fire, smoke damage, vandalism, etc. To protect your income, get a Business Interruption or Loss of Earning Insurance as part of the Property Insurance Policy.
- Business Owner’s Policy or BOP is everything that every new entrepreneur should have. It includes property insurance, business interruption coverage, liability insurance, vehicle coverage and even crime insurance. You can change the BOP to suit your business’ specific needs. An entrepreneur would normally choose a BOP to save money, because it is an all-in-one insurance coverage that is cheaper than other individual coverage.
- Professional Liability Insurance, also known as Errors and Omissions Insurance offers damages and defense for inappropriate rendering or failure to provide appropriate professional services. This coverage is not included in a General Liability Insurance. The Professional Liability Insurance is ideal for firms offering professional service, such as consultants, accountants, lawyers, notaries, insurance agents, real estate agents, technology providers, hair salons and other professional service firms.
- Commercial Vehicle Insurance protects your company’s vehicles, including employee carrying vehicles or products or equipment carrying vehicles. You can use this type of insurance to insure company’s cars, vans, SUVs and trucks from collisions and damages. Non-Owned Auto Liability is a type of insurance intended for your employees who drive their own vehicles for company business purposes. This protects your company if your employee does not have any or has insufficient insurance coverage. This insurance can be an add-on to the BOP policy.
- Worker’s Compensation Insurance gives protection to employees who got injured while at work. Medical benefits and wage replacement are given to those injured while on the job. In return, the employee waives his rights to file a suit against you and your company because of the incident. Get a Worker’s Compensation insurance to avoid any legal issues brought by work-related accidents. Although laws vary in every state, a worker’s compensation is required for all W2 employees. Stiffer penalties are given for non-compliance of the law.
- Directors and Officers Insurance provides protection for the company’s directors and officers for any actions that affect the company’s operations and income. This insurance covers the damages or costs lost from a lawsuit when a company director or officer faces legal charges brought by their actions while at work.
Lead your business in the right path by getting the appropriate insurance suitable for your company. It is still more beneficial to follow the rules of law, although risks are part of venturing into a business.
To learn more about the required business insurance for new entrepreneurs in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N state Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.