Starting your own business comes with a lot of anticipation, responsibility and preparation.  When venturing into a new business there is a lot to look forward to and a lot to consider before opening the doors.  One thing that is often overlooked when starting up a business is insurance.  Business owners become so involved and wrapped up in aspects such as capital, funding, licenses, inventory, employees and everything else that often business insurance takes a back seat.  Insurance is essential to the success of your business, no matter what size your business is.

The risks involved in starting your own business are plentiful.  Without insurance business owners set themselves up for a huge fall should a disaster strike.  Unexpected circumstances surround us every day and therefore your business as well.  With basic general business insurance you at least have the ability to protect yourself and your family should anything happen when you are not prepared.

When looking for small business insurance coverage that meets you specific business needs it is wise to understand exactly what is available and what you need to be adequately covered. There are three basic types of business insurance; general liability insurance, property insurance and workers’ compensation insurance.

General liability insurance for business owners is available to cover people who come into harm’s way in or near your business during working/business hours.  If anything happens to any individual that is in your business general liability insurance helps to cover the expenses that will be incurred and will assist in settlement costs that can range from ongoing medical care, surgery, rehabilitation, home modifications and beyond. When you are speaking about physical or emotional care for someone you are considering a large sum of money.  General liability insurance is there to make sure that this is taken care.

The next type of insurance that is important for business owners to consider is property insurance.  Property insurance is available to protect the business in case of a catastrophic event in regards to the physical location and equipment used for the business.  Insurance that covers the property ensures that there are funds to cover renovations.  Many threats surround the physical location of a business including vandalism, theft, accidents and fires. It is so important that in business owners take time to insure their future stake in the business. Rebuilding a physical location along with equipment and inventory is a large cost that many businesses without insurance cannot recover.

Workers’ compensation is the last type of business insurance we will cover.  As the name stats workers compensation, often called workmens’comp, covers and compensates employees that are hurt, injured or disabled in a work related incident.  This insurance is incredibly valuable as it protects business owners from lawsuits if in fact an employee ever sues an employer claiming an illness or job related injury.

Commercial insurance policies should be tailor-made to your business while being affordable and effective.  A quality local insurance agent will understand the needs of businesses from your area along with specific special industry needs you may have.  Whatever you do, when starting a business, don’t forget to look into and purchase business insurance.  It may save your entire livelihood one day.