What Insurance Do I Need When Starting a Business?

Starting your own business may be one of the most exciting and significant moments of your life. But building a business from the ground up requires significant financial investment, and new companies may have limited resources to fall back on in the event of unexpected losses or expenses. Even a single accident or error could derail your business and jeopardize its future. With that in mind, you should prioritize a versatile insurance portfolio.

Key Coverages for New Businesses

Insurance needs may vary significantly among businesses. Small details and unique circumstances could invoke vastly different coverage requirements even among organizations that appear outwardly similar or operate in the same industry. The following types of insurance may be advisable loss control measures for your company, regardless of size or sector:

• Workers’ compensation insurance—This coverage is legally required for many employers and may help pay for losses and expenses arising from work-related injuries and illnesses, including an affected employee’s medical bills and your business’s legal costs.
• Errors and omissions insurance—This coverage, or professional liability insurance, may insulate your company from financial losses if a customer or client alleges your professional services were misrepresented, negligent, late or otherwise inadequate.
• Commercial property insurance—This coverage may help pay for losses and damages involving your business’s physical assets, including buildings, electronic devices, equipment, inventory and furniture.
• General liability insurance—This coverage may provide financial assistance if your company is responsible for third-party losses, such as those arising from bodily injuries, property damage or personal and advertising injuries (e.g., slander, libel, false advertising and copyright infringement).
• Business interruption insurance—This coverage may compensate your business if an incident disrupts your normal operations by recouping lost revenue and paying various business expenses (e.g., payroll and rent).

Small- and medium-sized businesses may also be able to access business owners insurance policies (BOPs), which typically package commercial property, general liability and business interruption coverage. This may prove to be both cost-effective and convenient.

You should also thoroughly analyze your business’s operations to identify additional insurance needs. For example, companies that plan to use motor vehicles regularly may require commercial auto insurance. Similarly, those working with private or sensitive data should consider purchasing cyber liability coverage.

Get the Right Coverage

With nearly two decades of experience serving the Des Moines area, the award-winning staff at McCartan Insurance Group is well-equipped to help you maintain financial security and peace of mind as your business grows and thrives. Our knowledgeable agents will work with you to assess your coverage needs and assemble an ideal insurance portfolio. Visit our website or call 515-633-2273 to get started today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.