Finding suitable insurance options for your new company can be complicated and time-consuming. You need to know everything from professional liability to vehicle and health coverage. In a telephone interview with Small Business Trends, Hanley said that “if you have an Etsy shop out of your garage and keep all of the products and supplies there, it is not covered by your homeowners’ policy.” If your home is destroyed by fire and you have all your supplies, your homeowner’s policy will not cover it.
You might need other options as your business grows. Hanley explained that when companies expand to different locations or produce large volumes of products, it is time to think about alternatives. Identifying your most significant risks is essential to determine what coverage insurance technology you should have. If you operate a primarily online business, you will likely need insurance covering cyberattacks and other online activities. However, if your company sells physical products, you should be more concerned with product liability.
Your business must have insurance for employees. While workers’ compensation laws differ in each state, you may be required to provide this type of coverage for employees. It doesn’t have to be mandatory, but it can be an option depending on your team members’ work.
You need to be able to distinguish between an employee and a contractor. Hanley said that although the situation may be different, it is more common for someone to do business under another company name than theirs and that they are considered a contractor. You don’t have to give them coverage if an official computer company is hired to repair your hardware. You may view them as employees if they work for you as a freelance IT professional and you pay them regularly.
A benefits liability policy is recommended if you offer benefits to your employees. For example, if an employee faces hardship because of the lack of options, they can sue you for providing a low-deductible health plan. Your benefits liability will ensure that you are covered in such cases. You should ensure you have independent contractors covered when reviewing liability policies. Hanley says that you could be held responsible for the actions and conduct of any employee you hire at your site. For example, if a plumber harasses someone in your workplace, they can sue because you brought them in.
It is also essential to ensure your cyber liability policy (or similar) covers you in the event of Denial of Service attacks. This could be particularly important if your company offers online services or courses. Coverage may be required if customers or clients are prevented from accessing their purchased products for an extended period. Product liability coverage is available for more tangible products. This protects you in the event of an injury or illness caused by your products. This can be helpful if you sell toys, food products, or other items that might harm your customers.