A major consequence of the pandemic has been the way people have decided to work. While being confined to their home, many people realized they would rather work for themselves, which is proven by the huge surge of new business applications, from 987,500 in 2019 to 1.4 million in 2021, according the Jacksonville Business Journal.
While starting a business can be fun and exciting, there is one very critical aspect that is not so exciting but is totally necessary - that's insurance. When you open a new business, you open yourself to liabilities and risks that you most likely could not finance yourself.
So one of the first measures you need to take is to meet with your J.P. Perry agent to help determine what type of protection you need. The type of business, the size of business and the types of operations you have will dictate what kind of coverage you need. But to give you an idea of the insurance you may need to consider, review this list of the top 10 business insurance policies.
General Liability Insurance: With this coverage your company has protection from claims of bodily injury or property damage. If your company sells a product, then you will also want to look into product liability insurance to protect you from claims of bodily injury or property damage that your product may cause.
Professional Liability Insurance: This policy, also known as Errors and Omissions insurance or Professional Indemnity insurance, covers claims related to mistakes made through the service your company provides.
Workers' Compensation Insurance: Coverage with this policy will help provide benefits to your employees if they get injured or sick from their jobs. Most states require this coverage.
Commercial Property Insurance: This policy will help cover the costs of damage to your business property, including furniture, tools and equipment.
Commercial Auto Insurance: If your business involves having employees driving for your company, this coverage will help cover the costs of car accidents you or your employees may have.
Business Income Coverage: Also known as Business Interruption insurance, this policy can help you recover lost income if your business has to close because of a covered incident.
Data Breach Insurance: With the risks we face today with new technology, you may want to consider coverage that helps your business respond to a data breach. This can involve costs associated with alerting customers and the public of a breach and restoring your reputation.
Commercial Umbrella Insurance: This policy will help provide extra coverage if a claim against you is higher than your general liability policy limits.
Employment Practices Liability Insurance: Also known as Employer's Liability insurance, this policy helps cover legal expenses involving claims such as discrimination, wrongful terminations, harassment, etc.
Business Owner's Policy (BOP): This is a popular insurance package for small business owners because it combines many of the above insurance coverages, such as general liability, property insurance and business income coverage. It's an easy way to bundle the coverage you need into one package.
As you can see there are various exposures to your business that you could experience as a startup. The commercial lines professionals at J.P. Perry can help you determine what insurance you need and when you need it.