Although the COVID-19 pandemic caused a lot of disruption in the United States, millions of people in the country still open or plan to open new businesses. Every year, about 500,000 new businesses are started.
It is well known by those that start new businesses or those acquainted with them that entrepreneurship isn’t an easy feat and as such you have several decisions to make, one of which includes getting business insurance to protect your venture. Although it is easier said than done, listed below are some of the various types of business insurance you can purchase and the ones that should be prioritized.
Business Interruption Insurance:
This type of insurance is very important because, just like the COVID-19 pandemic, many unforeseen circumstances can interrupt the flow of your business and cause it to shut down for some time. The business interruption insurance policy is one that will compensate you for the income you will lose when your business either shuts down or can no longer operate. It is also important to be very aware of the events that will be covered and those that will not be covered when purchasing this type of insurance policy.
General Liability Insurance:
This policy protects both you and your business from a wide range of liability claims. For example, if a customer or employee sues after sustaining an injury on your business premises, your insurance covers it instead of you. If your employee causes unintentional damage to your client’s property and the client requests payment for those damages, the insurance once again covers it.
Cyber Insurance:
This is very beneficial for you if you have digital operations like a website or any social media accounts. Cyber insurance can provide coverage in case you suffer from any cyber-attacks, such as hackers bringing down your website with denial of service attacks or stealing your customer data from your databases. As more forms of the business move online, these forms of attack have become very lucrative for cybercriminals.
Workers’ Compensation Insurance:
While most states legally require you to purchase this type of insurance if you have at least three employees, it is also important to have this policy in order to protect your business from financial loss or in the case of an employee sustaining an injury on the job and filing a compensation claim against the company.
Purchasing adequate insurance for your business is an effective risk management strategy as many businesses are exposed to a number of the risks mentioned above. It is safe to say you now know the various types of business insurance to consider for your own unique business. There’s also professional liability insurance and commercial auto insurance depending on the nature of your business. To learn more about which policy works best for your business needs, contact the experts at Phocus Insurance Services in Phoenix, Arizona today. We are ready to assist you with all of your coverage needs.
