Do Entrepreneurs Need Business Insurance?

No matter what industry you are in, no matter what you are selling — service or product-wise — it's essential to have liability coverage. This coverage is in place to protect you in the event of someone holding you liable for an injury or accident caused by your products or services. Likewise, if you are a professional offering a service, you can protect yourself from claims of negligence or errors. A certain amount of liability coverage may be required, but you may also opt to purchase additional liability coverage for your full protection.

Property coverage protects your office location and interior property (furnishings, technology, production equipment, inventory, etc.) from natural disasters, fires, theft and other unexpected events.

If you or any of your employees must drive for your business, you’ll need business auto coverage. Remember that you’ll need this type of coverage even if you will be driving your own personal vehicle(s) or if your employees will be driving their own personal vehicles. If the purpose of the driving is business-related, regular auto coverage won’t cover any accidents or auto damage.

Once you begin to hire employees for your operation, you will have to read up on your state’s workers’ compensation insurance laws. Most states require most businesses to carry this coverage. 

It is workers’ compensation insurance that that will provide supplementary income, medical benefits and other financial support to employees who get hurt on the job. It will simultaneously free the employer from liability for the injuries in most circumstances. Therefore, by having coverage, you’ll significantly reduce your chances of getting sued when someone gets hurt while on duty. 

Interested in finding out more about business insurance for your entrepreneurial endeavor? Speak with a business insurance agent today and learn about your options.