Have you started your first small business recently? Great! Have you gotten insured yet, this should be a priority. Read on to find out why and how to get business insurance.
A Bad Scenario
You've just started getting some business and are feeling great about your decision to become an entrepreneur. Cash has started to roll through the door. But then, someone gets hurt on your property. Now, you have a law suit on your hands. Since the business doesn't have enough money to cover the accident, your personal assets become the target of the law suit. You can quickly lose everything you've worked for, and even come out with your own savings depleted, if you happen to have an accident while running your business. Although the odds may be small that this will happen, the results of it happening are catastrophic. That sounds like an excellent type of situation that you'd want to insure, right?
The Insurance You Need
Perhaps, most importantly, you will want to have commercial auto insurance for your business. That is especially the case if you will be transporting passengers as part of your business. The liability can be very high if you are at fault for an accident that affects multiple people and your personal insurance won't serve the claim.
General liability insurance is a great idea too. Although you can get waivers for personal injury claims, basically having the client assume the risk of participating in your activity or service, you still could get sued and have to prove that you are not liable. General liability insurance also covers other things, like cases of slander or potential copyright infringement. Any time someone might come after your business, a general liability insurance policy is designed to be your first line of defense, providing some legal support in dealing with a litigious customer or a lawyer.
Where Should You Get Business Insurance?
You have a few choices for how to get your business insurance. You could go through a business insurance broker who can bundle multiple types of insurance together. That's often a great choice, because you can save money on each premium. Another option would be to get commercial auto insurance through your existing auto insurance policy provider; they might cut you a discount for being a loyal customer. Of course, there are many quote tools online, but you can't be sure you're getting the best rates until you negotiate with an actual representative.