There is nothing quite like the excitement of finally starting a new business, especially if it has taken you a long time to set it up. However, it is important to protect your new business. This is something that can be done by getting appropriate insurance for your new undertaking.
Why Do I Need Insurance for My Business?
As we all know, life is full of surprises and you never know what might happen next. With that in mind, wouldn’t it be incredible to be protected against certain inconveniences before they happen? That is exactly what insurance does for your business.
Not only does the right insurance help pay for expenses incurred in the event of unfortunate losses, but it also protects you from lawsuits filed against you by your clients. This policy will help keep your business buoyant if something goes wrong.
Types of Business Insurance
As beneficial as business insurance is, it is crucial that you get insurance coverage that is not only specific to your kind of business but is also sure to cover the essentials. You can do this by getting more than one type of insurance, depending on how big and diverse your business is.
For small businesses, there are four common types of insurance options available, as discussed below.
- Liability Insurance: As the name suggests, liability insurance comes to the rescue when you have third-party legal expenses to be paid. It also takes care of legal representation costs and any damages you may incur.
- Commercial Property Insurance: This basically covers everything you might own, including the assets of your client that have been put in your care. From buildings to equipment and inventory, this insurance has you covered.
- Commercial Auto Insurance: If you have a vehicle that is being used for business purposes, this is the right kind of insurance coverage for such vehicles. Also, if you use your personal car for your business, you may need to add a commercial auto policy to your regular car insurance for adequate protection.
- Consultant/Professional Liability Insurance: This policy protects businesses offering professional/consultancy services. It covers the legal expenses incurred if you are being sued by a client for misdirection or bad guidance.
Do I Need Business Insurance in Arizona?
In Arizona, the law requires business owners to have adequate business insurance. However, only a few forms of insurance coverage are mandated by the law. For example, every business owner in Arizona must have workers’ compensation insurance, even if they hire only one employee on a regular basis, including part-time, minors, or immigrant workers.