Let’s just say that before you decided to become an entrepreneur and run your own business– you already have your life insurance. A wise decision for someone who thinks about the future. You know that life is full of ups and downs. And you are prepared for it. But what about your business? Are you prepared if something happens to it? Something, like issues or events that can turn the tide of its growth. Luckily, there’s also entrepreneur insurance, or what most people call it… business insurance.
All businesses– large, small, or even startups– should have business insurance. It aids in paying property damage and liability compensation costs. These expenses are not a joke. They may cost higher than you imagine, depending on the incident. Without business insurance, you as an owner won’t have a choice but to take from your own pocket to pay. Worst case, you might end up losing your business or get bankrupt.
The most basic insurance that a business can get is the business owner’s policy (BOP). This policy combines three insurances that business mainly needs. These are business property, business liability, and business income. Let’s check each insurance and see why it’s important.
Business Property
Business assets such as tools, documents, furniture, etcetera, and even your business’ physical location are covered by this insurance. The coverage of this insurance may include replacement cost, actual cash value, and extended replacement costs of the said properties in events of an earthquake, flood, etc. depending on the policy that you will take.
Business Liability
This insurance covers the cost of any liability claims or lawsuit against your company. Meaning, it covers any direct financial liabilities incurred and cost for legal defense. The three main types include general liability insurance, professional liability insurance, and product liability insurance.
Business Income
In the events where your business can’t operate due to covered circumstances (natural disaster, accident, etc.), this insurance helps replace lost income. Sometimes called business interruption insurance. With this, you can still keep paying your business bills, and payroll. Basically, it can help you get through business temporary suspension.
There are many kinds of insurance policies. Many insurance companies offer different kinds of coverage and benefits. The one that suits your business depends on its nature. For some states, it is required for businesses who have employees to have these types of insurance: workers’ compensation insurance, unemployment insurance, and disability insurance.
For entrepreneurs who do most of the businesses online or home-based, it also advisable to get business insurance. Therefore, you probably need a business income, liability insurance, and a kind of insurance that covers your equipment and inventory. Companies that offer insurance policies have advisers that can help you with that.
Truly, some may say that you don’t need an insurance policy for your business. But if you want uninterrupted growth for your business, you better have one or even as many as you can. In other words, your goal in being an entrepreneur should be financial freedom. Don’t let “unfortunate events” become your downfall. You and your business should always be ready.
See Also: SECURING YOUR ONLINE BUSINESS
