Starting a new business in the current economic climate requires extensive planning and thought. Business owners should not lose sight of the fact that things could, and probably will, go wrong along the way. While the ebb and flow of financial success is an inevitable part of any modern business, it is important to prepare contingency plans. Protecting your business from loss involves purchasing the most appropriate level of business insurance, but choosing how much coverage is necessary for a new business is not always a simple process.
General Liability Insurance
If a business is to have just one element of insurance protection in place, it should be general liability insurance. This coverage protects the business and its owner from costly legal proceedings that arise as a result of property damage or bodily injury occurring on the business premises.
Property insurance is essential if the premises are owned by the business, since such coverage will cover the cost of loss or damage as a result of fire, theft, vandalism or other events. In most cases, this type of insurance will also provide coverage for essential equipment, such as computers, office furniture and tools.
Business Owner’s Policy
If a business owner is in any doubt about the level of coverage needed, purchasing a business owner’s policy could be a prudent course of action. Such a policy will usually include liability insurance, property insurance and business interruption insurance and provide coverage for pretty much anything else that can go wrong with a new and developing business.
Commercial Auto Insurance
If the running of vehicles is an integral part of operating a business, commercial auto insurance is essential, as it will provide coverage for injury, damage and the loss of goods while in transit.
Worker’s Compensation Insurance
While this is not always at the top of a new business’ list of financial priorities, it can provide employees who work in relatively dangerous environments with medical benefits and wage replacement payments should an accident or injury occur within the workplace. In many cases, companies that have this form of insurance will require that new recruits waive their right to sue as a result of a work-based accident.
Professional Liability Insurance
Often referred to as errors and omissions insurance, this type of coverage will cover the costs of defense and damages should legal action be brought on the grounds of professional misconduct. For instance, it is usually a condition of a license to practice medicine that adequate professional liability insurance is in place to cover the costs associated with incorrect diagnoses and botched medical procedures.
It is usually a business owner’s natural instinct to keep costs to an absolute minimum during the early stages of a company’s life. While it may be tempting to save on the cost of insurance, the cost of not having insurance should be factored into the decision-making process.
Call Danback Insurance Agency today at 512-454-4567, and one of our experienced insurance agents will discuss your Austin commercial insurance requirements with you in detail.