How To Protect Your New Business with Small Business Insurance
By Rick Russo, Partner
Now that you’re getting your business up and running, it’s time to think about the types of insurance you need. Although there are all types of new businesses starting every day, and some may need more specific insurance coverages, the following list includes the basic insurance coverage needed for any new business.
Basic Small Business Insurance
- General Liability Insurance is a must for all new businesses. This is a broad form of liability insurance that will protect you against liability claims if someone should be injured on your premises; but also away from your premises due to an accident caused by you or your employees, as well as damage or injury caused by your products or completed work.
- Workers Compensation Insurance provides insurance coverage for employees injured while at work. If you are in the construction business in the State of Florida, you will need to purchase workers compensation insurance even if you have one employee. If the one employee is the owner, you may file for an exemption with the State of Florida. All other companies in the State of Florida are required to purchase workers compensation insurance once they reach four total employees. However, if you have fewer than four employees and do not purchase workers compensation insurance, you could be held responsible for medical and other expenses associated with an injured employee, so workers compensation insurance is actually needed once you hire your first employee.
- Auto Insurance is needed if your business has company vehicles. If you do not own a vehicle in the company, it is recommended you add (Hired and Non-Owned) insurance to your General Liability insurance policy. This provides protection for your company when an employee is using a personal vehicle on company time or if you rent or borrow a vehicle for business purposes.
- Property Insurance will be needed if you have purchased a building, but also for your business property such as office furniture and equipment.
- An Umbrella Insurance policy is recommended because it provides additional liability insurance coverage over and above the General Liability, Workers Compensation and Auto insurance policies.
Depending on your business, some of the other insurance policies you should inquire about include Business Income, Electronic Data Processing, Crime, Inland Equipment, Employment Practices Liability, Cyber Liability and Directors & Officers. Ask your BKS Commercial Risk Advisor for guidance as to the types of insurance and the levels of coverage that will best protect your new business.