Every business needs general liability insurance for protection from lawsuits. Commercial insurance and an array of other policies are available to protect your business assets in the event of business interruption, bodily injury, property damage, and more.
Malhotra & Assoc. Insurance has a team of commercial insurance experts ready to advise your startup on its coverage needs. Contact us today for more information.
General Liability Insurance for Startups
General liability insurance will protect you from any lawsuits that arise, helping to pay the costs of any settlements and the legal costs of defending your business in the lawsuit.
Even if your startup business is registered as an LLC or a corporation, your company’s assets are not protected from liabilities. That is what makes purchasing a general liability policy so crucial for any business.
What is protected under general liability insurance? Here are a few of the major types of events covered by general liability policies:
- Accidents and injuries to people (bodily injury) and property (property damage) that happen on the business’ property or as a result of its operations
- Medical payments for minor injuries of visitors on the business’ property
- Liability for damage to someone else’s property while undergoing normal business operations
- Accusations of slander or libel due to company advertising
- Fire damage and other covered events
General liability does not cover worker’s compensation, professional liability, or errors and omissions. You will need separate insurance policies to cover those damages or lawsuits.
Commercial insurance, also called business insurance, is something you may want to look into as a startup. Commercial insurance policies protect your owned or rented building and the equipment your business uses to operate. Damages to your expensive machinery, inventory, or other assets could set you back. Protecting your business with commercial insurance is a smart way to get your startup on the ground running.
Other Business Insurance Types
Business Owner Policies (BOP) offer combined property and liability coverage, including business interruption insurance.
Commercial auto insurance covers you for bodily injury and property damage for any business-owned vehicles. Your insurance company will pay a third party for any damages until the amount reaches the coverage limit.
Product liability will pay for a third party’s damages caused by your covered products.
Commercial property insurance protects your place of business and its contents. This will cover your building or unit from damages caused by covered events, pay for the costs to repair or replace your damaged property, and can cover equipment breakdown, debris removal, and water damage.
Professional malpractice coverage is important for someone who gives advice to help pay for any damages caused by your services.
Workers compensation is required for most businesses, and pays for the medical care of workers injured on the job and replaces some of the workers’ lost wages.
For home-based businesses, you can extend the coverage of your homeowners policy to cover your equipment and business assets.
Purchasing Business Insurance
When your business is ready and you need to purchase business insurance, you should start with general liability insurance. This will protect you from lawsuits and help you afford the legal costs to defend yourself. While you may have protected your personal property and assets by registering your startup as an LLC or corporation, your business assets are still vulnerable until you protect them with general liability. Additionally, you may want to consider purchasing commercial insurance. Protecting your property, your business income, medical payments, workers compensation, and more will set your startup up for success.
Are you interested in learning more about business insurance? Then reach out to one of our friendly and experienced agents today!