Very early in your plans for your start up, you need to understand that business is more about managing risk than taking risk. One of the best ways to manage risk is by making sure that you have adequate insurance coverage. Sit down early with your insurance agent and review the specific needs of your planned small business and be certain to look at the following:
Fire Insurance
Provides protection for loss or damage of buildings and inventory in case of fire.
Extended Coverage Insurance
Protects buildings and inventory in situations not covered by regular fire insurance (storms, smoke damage, explosions, etc.)
Liability Insurance
Provides coverage against claims of bodily injury
Worker’s Compensation
Covers the liability of the business against injury or death of employees on the job
Theft Coverage
Protects agains burglary
Business Interruption
Protects the normal business earnings if the business has to be shut down because of other insurable situations
Professional and Malpractice Insurance
This coverage is for certain professionals (doctors, attorneys) against malpractice law suits
Health Insurance
Provided as part of your employee compensation plan