Any new entrepreneur considering starting a business needs to look at business insurance. Commercial business insurance covers a broad spectrum of protection that includes your property, you and your employees, and your liability. It’s normal to have questions regarding the type of coverage your business requires. The ultimate goal is to make sure you are never under-insured or exposed in the event of an incident or disaster while not having double coverage or unnecessary insurance.
Business property insurance will cover losses to your building, and the property inside of it. Computers and phone systems, furniture, finished goods, as well as carpeting, lighting fixtures and supplies will be covered. There are two options, either actual cash value, which is purchase price less depreciation, or the replacement cost of the item. Discuss these differences in more detail with your agent to determine what is best in your situation.
Almost all businesses are required to have workers compensation insurance. This covers the employee from lost wages while protecting the business against being sued by the employee. More specific information is available from the insurance department of your state government and your commercial insurance agent.
General business liability insurance must also be in place to protect the business and the owner against lawsuits. A general liability policy will cover most situations that may arise. There are specific types of liability coverage for risks not covered within the general liability policy. An example would be realtor liability insurance which is a separate coverage generally taken out by real estate brokers and agents. Ask your commercial insurance agent what else you should be looking at for specialized coverage.