Have A New Business? Insurance Options You Must Consider

When starting a new business, there are many tasks and concerns that consume the time of new entrepreneurs, and new business insurance is usually not considered a top priority for most. However, business insurance is something that every new business owner should address and deal with as soon as possible – especially, if they think their business might actually be successful.

Insuring a new business is essential for protecting an entrepreneur’s investment in a new business venture; furthermore, the need for business insurance should not be regarded lightly or foolishly avoided and not considered. In today's world, business insurance is a must.

Types of Business Insurance to Consider
When opening a new business, you will undoubtedly be spending money; you will be spending money to purchase furniture and equipment, office supplies and perhaps even inventory and/or vehicles to use in the operation of your business. These types of purchases can represent a significant investment of capital and should be protected. Therefore, there are several types of business insurance policies you might wish to consider:

Commercial Property Insurance

Commercial property insurance covers almost everything related to the potential loss and damage of your business property; it covers loss in the event fire, smoke, flood and even theft and vandalism. In fact, there are wide variety of circumstances and events, for which commercial property insurance offers coverage. As far as commercial property insurance is concerned, the definition of property can include a lot of things, such as: lost income, interruption of business activities, building loss or damage, office equipment, inventory and almost anything else you can imagine. It even covers the cost of replacing important documents.

Commercial property insurance is usually made available in two general types:

1. All-risk policies are commercial property insurance policies that cover a very wide range of events and circumstances that are not explicitly excluded in the policy
2. Event-specific policies offer coverage for events or circumstances of a particular type and include only those listed in the insurance policy

General Liability Insurance

This is a must-have insurance type for any business. General liability insurance addresses and covers most potential legal hazards you may run into. For example, if a customer is injured while visiting your business, you may be sued and held financially responsible for the customer's injuries and medical costs. However, general liability insurance will usually cover such damages and costs. In addition to offering coverage against accidents or injuries, general liability insurance also provides coverage for any legitimate, business-related events that result in liability being attached to the business owner. 

The policy usually also provides for defending lawsuits and making settlements in legal cases as well.

Home-Based Business Insurance

While it is a common, yet mistaken, belief that homeowners insurance will provide coverage for your home-based business - this is simply not the case. Depending on any potential risk to your particular home-based business, you may seek to add additional riders to your homeowner policy to cover simple business-related task and liabilities. However, you should probably consider purchasing a standard business general liability policy, as described above.

As you can see, there are several types of business insurance policies to consider. Moreover, the ones listed above are but a few that you may wish to consider; however, you definitely need to think about purchasing policies of the type described herein. An effective business insurance policy can mean the difference between continued operation and failure in certain situations that can arise during the operation of a business. You don't want to find yourself needing coverage - after it's too late.

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