Many people around the world have dreams about moving to the United States of America and opening up a business, also known as the “American Dream.” Opening up a new business can be a daunting, yet fulfilling task. Even more so when you are opening up that business in a new country. The United States requires businesses to have certain insurance coverage by law. However, there are other insurances you should consider just to protect yourself as a business owner.
Workers’ compensation insurance, also known as workers’ comp, should be a main priority of your business. It will cover employees in the event they are injured at work, and should cover medical treatment, disability, and if necessary, a death benefit.
Comprehensive General Liability
Comprehensive general liability insurance covers your business from incidents that occur at your warehouse, building, grounds, etc. Anything can happen, and a visiting client can easily slip on something causing them to get injured, and making you liable for a lawsuit.
Product Liability (if applicable)
Product liability insurance is necessary if your business creates or sells a tangible product. This insurance will cover you from any potential lawsuits from damages or injuries that are caused by one of your products.
Professional Liability (E&O)
Professional liability insurance, also known as errors and omissions (E&O), will cover your business if you provide advice, or provide a service. It will protect you against negligent claims and damages that are awarded from a lawsuit.
Property insurance is much like your homeowner’s insurance. It covers your equipment, inventory, and other materials in the event of a fire, storm, or theft. It is also needed whether you own the space or lease it. There are limits to the coverage, so in order to attain more coverage, you may need purchase a separate policy, or an umbrella policy. Umbrella policies are also referred to as excess policies.
Business Interruption Coverage
Natural disasters and catastrophic events can happen unexpectedly, often times shutting down businesses or interrupting operations. Your business can experience a loss of income during this time, which makes it important for you to have a business interruption insurance policy. Business interruption insurance will compensate your business for lost income during these times so that you do not experience major financial losses.
Disability insurance is different from workers’ compensation insurance. Disability insurance covers your workers in the vent they are injured including outside of the work place, or develop a serious illness. If they are unable to work, this coverage will pay them a percentage of their income for a period of time.
Automobile Insurance (if applicable)
If your business has company vehicles, or a fleet of trucks, delivery vans, etc. then you should be thinking about auto insurance.
In order to open a business, you will more than likely need a life insurance policy before receiving any money from the bank. This is to protect the bank, and give them the coverage they need if something happens to you and you leave debt behind.
It also is common for businesses to offer life insurance policies to “key employees.” In fact, many companies offer their entire workforce life insurance coverage based on their salary.
If you own a business, and are looking for protection and would like more information about business insurance coverage, we would be happy to assist you. Also, if you are looking to purchase various forms of business insurance such as General Liability or Professional Liability, our insurance specialists have the experience to assist your business and offer advice in finding the perfect plan to fit all of its needs. For more information about the importance of umbrella policies, read our previous blog, “Why Business Owners Need an Umbrella Policy.” Contact us today at +1 954-828-1819 or +44 (0) 1624 678668 or visit us online at mhginsurance.com.