When first starting out in the business world, an entrepreneur has a lot to think about with regard to protecting his investment. Long before the first product is sold or an employee is hired, the business faces serious exposures and risks. One lawsuit or accident could destroy a business before it has had a chance to be successful. Whether you choose to consult with a commercial insurance broker or you join forces with one of the captive insurance companies in your industry, having the right business insurance can be the difference between failure or success.

Professional Liability Insurance

This form of insurance is also known as errors and omission insurance (E&O), and it works to protect a business from negligence claims that arise either a failure to perform or a mistake. Since the potential for errors and mistakes vary from industry to industry, a custom professional liability policy will be written for your situation.

Property Insurance

Even if you operate your business out of your house, you need to consider purchasing property insurance. Traditional homeowner’s policies will not cover the equipment or inventory that you have on your property, and the same can be said about renter’s insurance with a leased building. Property insurance will address damages and replacement of furniture, signage, inventory, and equipment in the event of fire, theft, or storm. Floods and earthquakes are often excluded from coverage, so check with a broker on riders or extensions.

Workers’ Compensation

The government has required that businesses of certain sizes provide workers’ compensation insurance. This is a policy that issues support for the medical, disability, and death benefits that may be needed in the event that an employee is injured or dies while on the job. Low-risk positions still need coverage, since slips-and-falls or claims of carpal tunnel syndrome are some of the most common but pricey claims faced by companies.

Vehicle Insurance

Any vehicle that will be driven for work purposes should be insured against liability. A minimum extension of coverage against third-party injury is good if that is all you can afford, but if you can extend coverage to comprehensive, it will cover the vehicle as well. For employees that use their own vehicles,  make sure their personal insurance plans are current since those services could cover damages or injuries that occurred if they get into an accident.

There are many types of insurance plans available for commercial ventures, but not all of them will be applicable to your business. A good insurance agent will be able to assess what you need and develop a specific plan against liability.