If you're going to start a business, it's important to protect yourself financially. Once you open to the public, there's a chance that a customer or employee could sue you, and you don't want to lose everything you worked for. Here are the different types of insurance you need.
Commercial General Liability Insurance
Commercial general liability insurance is one of the most important and broadest business coverages. It covers the financial harm you cause to other people. This might include causing property damage while working, hurting a customer or passerby during construction, or making a mistake during your work that later causes a fire.
You need commercial general liability coverage even if you have an office job. Someone could slip and fall while coming to meet you, or you could accidentally knock over and break someone's expensive laptop.
Commercial Auto Insurance
Commercial general liability coverage covers just about everything, but not auto accidents. Those fall under a separate commercial auto insurance policy. You need this coverage while you're driving to and from job sites, as well as while you're driving around on a job site. Like your personal car insurance, commercial auto coverage has limits for property damage and liability.
Even if you use a personal vehicle, you still need commercial coverage if you use your vehicle for your work. The only time you wouldn't need it is if you just use your car to commute to work and back home like an employee in any other job. If you use your car for more than that, your personal insurance likely won't cover any accidents.
Homeowners insurance won't cover any of your business activities. Even the liability portion that covers you for things like dog bites and accidentally knocking over people doesn't cover what you do while working.
What homeowners insurance does is keep you from losing your business if you're sued for personal reasons. If your dog bites someone and you don't have enough insurance or other savings, you might have to close your business and sell it to pay the lawsuit.
Workers compensation insurance is a special insurance that's required by law. You pay a percentage of each worker's wages that varies based on how dangerous their job is. If they're injured on the job, the workers compensation insurance will cover their medical expenses and lost wages.
To learn more about the insurance you need to start a business, talk to a local commercial insurance company today.