Owning a business can be exciting and overwhelming. To protect your business and maintain your success, it’s important to have proper business insurance coverage. Not sure what you need? This quick guide will help you get started.
Why should I get business insurance?
Business insurance is designed to keep you in business. There are a variety of risks associated with operating a business and if certain types of losses come along, your insurance can help you avoid bankruptcy to keep the company in business.
There are several types of coverage that can aid in avoiding high cost events like damage to property, legal claims, employee injuries on the job, and more. You can also bundle some types of coverage together to save money.
Why do I need insurance if my business is an LLC?
Operating your business as a Limited Liability Company (LLC) will only protect your personal finances from any lawsuits. If a customer slips on a banana peel and falls in your restaurant, you would not be required to pay their medical expenses out of your own pocket – but your business is still responsible and could face bankruptcy if uninsured.
Am I required to carry business insurance?
In many cases, yes. Most states require businesses to have a Workers’ Compensation policy if they have employees, although the specific rules vary by state. Additionally, many landlords, vendors, and other partners typically require that you carry General Liability insurance before they will enter into a contract with your business.
What is recommended for a new business?
Every business is different, so this article is intended to begin the conversation. The most common types of coverage that a new or growing business might purchase include:
Business Owner’s Policy (BOP)
This type of policy bundles three key types of coverage – General Liability, Property, and Business Interruption – to save you money.
Cyber coverage is for costs associated with data breaches or other cyberattacks, which are becoming more common. If you take payments via credit cards and/or store sensitive information, it’s likely you will be targeted by a cybercriminal. In fact, more than two-thirds of small businesses have experienced a cyberattack in the last 12 months alone.
Covered costs might include repairs, regulatory fines, legal judgments, and more. Cyber coverage also helps you:
Most business owners already know that Workers’ Comp policies cover lost wages and medical benefits for any employees who are injured on the job. But did you know this coverage also protects you as an employer by shielding you from most employee lawsuits?
Workers’ Comp coverage is legally required in most states if you have employees, but it’s a key policy to have even if you are not obligated to carry it.
A Commercial Auto policy covers your company-owned vehicle if it causes bodily injury or property damage. If you use a business vehicle, this policy is legally required in most states.
What if my business needs more specialized coverage?
As mentioned previously, insurance is not one-size-fits-all; every company is different. It’s possible your industry or business model might benefit from more specialized insurance coverage. A licensed insurance agent can work with you to build the best plan for protecting your unique business.
Once I’m covered, can I stop thinking about business insurance?
Getting coverage is the most important step, but it’s a good practice to review your insurance needs at least annually before renewing an expiring policy. A licensed agent can work with you to get you the appropriate protection for the correct price.
Changes with your business might also require changes to your insurance. You may need new or different coverage if:
How can NEWITY and Mylo help me?
NEWITY is thrilled to partner with Mylo to provide customized business insurance coverage and insurance advice for its members. NEWITY believes business owners deserve the best coverage available, regardless of size or industry. NEWITY partnered with Mylo because their licensed advisors and leading-edge tech will help you find the right insurance to protect what you’re building.
Mylo is part of Lockton Companies – the world’s largest independent insurance broker – with a 50+ year track record of connecting people and businesses to the right coverage. Mylo does not sell their own insurance, so they can provide a truly objective recommendation based on your specific needs.
At no charge to your business, Mylo promises to: