Types of Business Insurance Your Start-up Company Needs

Embarking on a business venture opens any entrepreneur up to a myriad of risks. Before you have even hired your first employee, you need to ensure that both you as a business owner as well as your business has been properly insulated against lawsuits that could have the potential of wiping out your business before it even gets off the ground. The good news is that there is a range of insurance covers offered to business owners depending on their specific needs. If you are starting a new company, here are some important policies you should consider when it comes to protecting your business.

Errors and Omissions Insurance

This type of insurance is also referred to as professional liability. This policy works toward protecting your business against any negligent claims that may be filed due to either the products or services that you professionally provide. When it comes to errors and omissions insurance, there is not a policy in place that fits the requirements of industries. As such, you would have to consult with your insurance providers on what types of concerns will be handled by your specific business insurance.

Property insurance

A common misconception that new business owners have is that property insurance is not exclusive to entrepreneurs who own their business premises. The truth of the matter though is that this type of insurance policy is pertinent whether you are leasing your office space or if it is on mortgage. Property insurance does not simply cover the physical premises. It also provides compensation in the event that items within the office space are damaged such as your inventory, your equipment, your furniture and more.

The insurance company will compensate you in the event your property was compromised due to theft, a fire or a storm. However, it should be noted that some insurance providers will not provide protection for events that constitute mass destruction such as earthquakes or flooding. If you live in an area that is prone to these acts of nature, you may have to consult with your insurance provider on how you can get protection from these natural calamities too.

Workers' compensation

If you are considering hiring staff for your business, then you have to sign up for workers compensation for them. This type of policy works toward providing compensation in the event your employees require medical treatment, compensation for disability and even death benefits to their kin in the event that they die due to the nature of their work or on your business premises.

For more information, contact Westralian Insurance or a similar company.