Building a Business
Depending on its operations, a business can have many insurance needs. Here are some things to keep in mind when building your business.
Unless you operate your business solo, you likely have at least a few employees. Even if you only have one employee, you must provide workers’ compensation benefits. Workers’ compensation laws cover nearly all industrial and private employees in every U.S. state.
Job-related injuries can have serious implications for employees. Workers’ compensation insurance ensures that if your employee is injured on the job, they can receive appropriate medical treatment and a portion of lost wages for time out of work.
Setting Up Shop
If your business will operate out of a building that is not your home, consider obtaining property coverage through a businessowners policy (BOP). A BOP can help protect buildings you own, rent, or lease, as well as the contents inside, from risks such as fire, lightning, and more.
Using Vehicles in the Course of Business
Your business doesn’t need to use a tractor trailer to benefit from commercial auto insurance.
A standard personal auto policy excludes coverage for business use of a vehicle. If you use your vehicle in the course of business, to transport your equipment, or to deliver goods, you’ll need commercial auto coverage.
Commercial auto insurance covers companies’ liability, property loss, and personal loss relating to a vehicle.
Liability for Your Business Operations
If you provide a service to others, you may be liable for any damage you cause.
A businessowners policy includes liability protection in addition to other coverages. Liability insurance provides protection against claims for bodily injury or property damage resulting from your business operations. This coverage also helps cover the cost of a legal defense in the event you are sued.
If you don’t need the property and industry-specific coverages of a BOP, commercial general liability (CGL) insurance protects your business from claims arising from your operations or sale of products.
Operating Out of Your Home
Your homeowners insurance may limit coverage for your liability in a business pursuit. However, all homeowners insurance policies can be customized to some extent with endorsements. The Business Pursuits endorsement can expand your personal liability coverage to sales, clerical, and instructional activities that you operate out of your home.
The endorsement only provides limited protection, though. For further guidance regarding your business insurance options, contact your agent.
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The content of this article is intended for informational purposes only. It is not an insurance policy, and does not, in any way, replace or modify the definitions and information contained in individual insurance policies. Terms and coverage availability may vary by state, and exclusions and deductibles may apply. Discounts also vary by state and may not be applied to all policy coverages. Coverage for an accident or loss is subject to the terms and conditions of the insurance policy applicable to a particular claim.