Insurance Needs For The Self-Employed

As a newly self-employed business owner, it's vitally important that you make sure you have sufficient insurance coverages. One claim against your business could otherwise cause you to go bankrupt. The following are a few different types of insurance that you should consider purchasing before your grand opening.

Property and equipment insurance

This insurance protects the tangible property that you have for your business. If you are operating out of a separate location, the policy will cover damages if you own the property, as well as providing coverage for all of your business equipment inside the property. You can also purchase additional contents insurance that will cover damages to your goods and merchandise.

For those working out of the home, you may need to get a separate policy to cover equipment and merchandise, since your home policy may not cover these things. You may also need umbrella coverage if you operate equipment that isn't covered under your home policy.

Liability coverage

Liability coverage protects you from being sued. A few scenarios that it can protect you from include the following:

  • Injuries that occur to someone upon your property.

  • Injuries that are caused by a product or service that you provide.

  • Lawsuits for negligence against your business.

In some cases, you may be required to carry a specific liability insurance as well as general liability coverage. For example, medical professionals usually need a malpractice policy.

Data coverage

If you keep any type of electronic files or records on your customers that contain sensitive information, then you should consider carrying a data policy. This covers you in the event of a data breach. A data breach can result in a lot of liability for your business, since you could face lawsuits from those that had their data stolen.

These policies will cover you in the event of a lawsuit. They will also cover any expenses you incur as a result of the breach, such as security updates.

Employee insurance

Bringing on even a single employee can increase your insurance needs. You may need to carry worker's compensation coverage depending on state requirements. Employee liability coverage may also be required in the event you are ever sued by a former employee.

Employees may also need to be added to existing policies, such as the auto policy for a company vehicle.

Contact a company like Patton-Chesnut-Binder Ins Agency for more help in navigating your insurance needs for your new business.