Being self-employed is a big step and one that many people strive for in their careers. There are a lot of things to take into account when setting up a business for yourself. One of those is insurance. There are various types of insurance that are a good idea when you are self-employed from owner insurance to traders policy to health insurance for yourself and your employees, if you have anyone working for you. Here’s everything you need to know.
Business Owner Insurance
Business owner insurance is important because it is a policy that is created specifically for small to medium sized businesses. It offers coverage for a range of things, including any buildings you use for business purposes. It also protects you with business interruption insurance in cases of fires, floods or other events that stop business temporarily. It also gives you liability coverage in instances where harm is caused to another due to neglect, faulty products or injuries sustained on your business’s premises.
Property and Casualty Insurance
This type of insurance is designed to protect what you own. That means any vehicles or buildings used for business purposes. Should damage or loss occur, those items are covered. In some cases, this also includes liability insurance.
Liability insurance offers protection should your business cause damage or harm to someone else’s property and you are legally liable for the accident. It also offers protection to your possessions in cases of damage or accident. This is important to have because it keeps you from losing your business if you end up having to pay out to a customer for any reason.
Business Interruption Insurance
As mentioned above, business interruption insurance is important because it keeps you from losing your business if you can’t be in operation for a short period of time. This could be due to damage to the business property, such as with a natural disaster. It covers you so that you don’t lose a lot of money while business is restored. It also offers coverage for any losses sustained as a result of a disaster.
Errors and Omissions Insurance
You need this kind of insurance because it offers protection should a client file a claim in cases of inadequate work or negligence. This type of insurance covers any court costs accrued as a result of the claim as well as any settlement that is reached and must be paid to the customer who brought the claim.
If you own company vehicles, this is a good policy to consider. It’s a policy designed for such businesses as mechanics, valets or roadside breakdown service. In essence, it’s important for any company that operates, sells, works on or buys vehicles of any type. A traders policy is vital because it protects against damage to your vehicles, but also damage or injuries sustained by a third party in an accident.
Owning your own business is a dream come true for many people, but you must be sure you are adequately covered and prepared for anything that comes up. Insurance is one of the most important things to consider when setting up shop.