Basic Insurance for Entrepreneurs

Insurance for Small Businesses

Whether you are just launching your business or are already established, Insurance is one of the most overlooked business requirements and one of the most important.

If you are now an experienced entrepreneur, you know that starting a business isn’t just sleeping in and not having time for brunch. Its hard work and sweat and maybe some tears, long days with little reward and maybe even a few years before profits are made. 

All this time and effort can be decimated if you do not have the correct insurance in place for your business. From being sued to being injured and unable to run your business, sudden unplanned issues can decimate a small business and you could lose everything.

Here we take a look at the six types of insurance each business owner should have, to cover the most basic insurance requirements:

Property Insurance – even if you are renting your workspace, you need property insurance as it covers everything from Buildings to office equipment and tools. For example, if your clients are all online, perhaps an online casino aimed at the sports betting NZ public, the loss of your server and computers would cripple your business. This insurance cover should include damages or loss caused by fire, vandals and theft. Also consider adding loss of earning insurance into this one, as you will be unable to operate and earn if you lose your business tools to fire/theft.

General Liability – This cover is so important, it is what will keep you open and in business if your employee, product or even yourself may have caused damage (bodily damage or property damage) to a third party. This policy should cover lawyer/defence costs as well as any damages awarded if you should lose the action against you.

Commercial Auto – This insurance will cover any vehicles you have in your company that carry good/staff/equipment. Even if your company does not have vehicles and employees use their own vehicles for company business, their cars should be covered.

Workers Compensation – This is often overlooked but should be added for all employees. This insurance covers wage replacement and medical benefits for those who were injured at work on the job. This insurance is necessary as your employees could end up taking action against the business if they are injured and do not enjoy this cover; it will therefore protect you against legal action.

Professional Liability – this insurance covers your business in case your business fails to provide or improperly renders the professional services they were hired to do. This will provide cover for defence as well as any damages if the case is lost (this is not covered under the General Liability insurance).

and Finally…

Life Insurance – This insurance will ensure your family is taken care of in case of your passing, and even if you take early retirement it is something to consider. This is particularly important for those entrepreneurs who cannot be replaced in their businesses – if you are removed from the business it will collapse leading to a loss of income to your family.

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